Palm Peak Capital has closed on the acquisition of its second platform investment this year with the purchase of Domaille Engineering in a carve-out transaction from ADDMAN Engineering.
Domaille designs and manufactures equipment and tooling used in the production of high-bandwidth, pre-terminated fiber optic cables, including polishing machines, epoxy curing ovens, and ferrule geometry inspection systems. The products are used by digital infrastructure development companies and cable assembly manufacturers to meet the requirements of data centers, telecommunications, and enterprise network infrastructures.
Domaille, led by CEO Michael Utley, was founded in 1990 by Dave Domaille and is headquartered in Rochester, Minnesota.
“The Domaille team is thrilled to partner with Palm Peak as their commitment to investing in technology-driven manufacturing aligns well with our vision to meet the growing demands of the global digital infrastructure buildout,” said Mr. Utley. “Together, we are well positioned to enhance our capabilities and continue delivering best-in-class solutions for our customers.”
“With significant intellectual property and technical manufacturing expertise, Domaille Engineering is a clear leader in fiber optic manufacturing solutions, serving customers in some of the fastest-growing areas of the digital economy,” said Dante Pavone, a vice president at Palm Peak. “We are excited to partner with Michael Utley and the rest of the team in an effort to accelerate their product innovation and growth.”
ADDMAN Engineering, the seller of Domaille, is a provider of additive manufacturing, precision machining, and post-processing services to companies operating in the aerospace, defense, motorsports, medical devices, and industrial automation sectors. ADDMAN was founded in 2020 by Mark Saberton and is headquartered in Fort Myers, Florida, with additional facilities in California, Pennsylvania, North Carolina, New York, Missouri and Maryland. The company has been a portfolio company of American Industrial Partners since April 2021 and has annual revenues of approximately $94 million.
When ADDMAN acquired Domaille in December 2021 from TSCP and Onward Capital, it integrated Domaille’s machining capabilities into its platform. Over time, ADDMAN determined that Domaille’s fiber optic product line did not fit with ADDMAN’s additive strategies. As a result, ADDMAN identified Domaille’s fiber optic segment as non-core and chose to divest the business.
“Palm Peak is excited to partner with a team that has led the way in fiber optic equipment innovation to support an acceleration of their product development, capacity expansion, and overall capabilities,” said Lynn Skillen, senior managing director of operations at Palm Peak.
The fiber optic equipment and pre-terminated cable assembly markets are seeing strong tailwinds from increasing demand for data center capacity, higher bandwidth networks, cloud migration initiatives, and the rollout of 5G. For example, according to Future Market Insights, the global data center cabling market is projected to grow from $7.7 billion in 2025 to $18.1 billion by 2035, at a CAGR of about 8.9%. Similarly, the global pre-terminated systems market, according to ResearchAndMarkets.com, is projected to increase from around $3.2 billion in 2025 to approximately $4.5 billion in 2029, reflecting a CAGR near 9.1%.
Palm Peak Capital makes control investments in lower-middle market industrial and services companies across North America. Many of the firm’s acquisitions are founder- and family-owned companies, corporate carve-outs, management buyouts, and select sponsor-to-sponsor transactions. Palm Peak was founded in 2024 by Managing Partners Steven Liff, Daniel Florian, and Jeremy Stone, and is headquartered in Boca Raton, Florida.
D.A. Davidson & Co. was the financial advisor to Palm Peak in its acquisition of Domaille Engineering and in raising senior secured debt financing and an equity co-investment from Stellus Capital Management.
“D.A. Davidson’s deep industry knowledge in communications technology and digital infrastructure, extensive relationships in the sector, and transaction expertise played a critical role in driving this outcome,” said Jeremy Stone, a managing partner at Palm Peak. “We appreciate the D.A. Davidson team’s support on our acquisition of Domaille and efforts in securing an attractive and flexible financing package, which enabled us to achieve an accelerated closing on the acquisition.”
Lincoln International was the financial advisor to Domaille.
© 2025 Private Equity Professional | October 28, 2025
