Damotech provides products and engineering services to improve the safety and longevity of warehouse racking systems. The company's services include on-site rack inspections performed by certified engineers and assessments compliant with safety standards.
Damotech provides products and engineering services to improve the safety and longevity of warehouse racking systems. The company's services include on-site rack inspections performed by certified engineers and assessments compliant with safety standards.
November 19, 2025|John McNulty
Vance Street Capital has acquired Damotech, a provider of aftermarket warehouse racking products and safety services, from Mountaingate Capital. As part of the transaction, Mountaingate will maintain a minority investment in the company.
Damotech provides products and engineering services to improve the safety and longevity of warehouse racking systems. The company’s products include Damo Pro, a custom-built rack repair unit designed to permanently fix damaged upright columns without full rack replacement; Damo Shield, a line of protective guarding products such as post protectors and frame guards; and Damo Inspect, a digital inspection platform used to monitor rack conditions and manage compliance.
Source: Damotech
Damotech also offers engineering services, including on-site rack inspections performed by certified engineers and assessments compliant with safety standards such as the Rack Manufacturers Institute (RMI), American National Standards Institute (ANSI), and Canadian Standards Association (CSA).
Damotech’s products and services are used by safety managers, warehouse operations teams, and corporate facility planners responsible for maintaining OSHA compliance and minimizing equipment-related workplace injuries. Damotech’s products are used in large-scale warehouses and distribution centers across the retail, e-commerce, logistics, food and beverage, and automotive sectors. Damotech was founded in 1989 by CEO Eric Naaman and is headquartered near Montreal in Boisbriand, Quebec.
Source: Damotech
“Vance Street’s track record of management-friendly growth investing paired with their experience scaling safety-oriented businesses created an ideal partnership,” said Mr. Naaman. “This partnership will enable us to double down on our exciting growth initiatives while continuing to retain our strong culture and core values.”
Mountaingate first invested in Damotech in December 2023. During the course of its ownership, Damotech closed two add-on acquisitions, which grew EBITDA by more than 4x. One of the two add-on acquisitions was the 2024 buy of Mac Rak, a Lockport, Illinois-based rack repair and protection manufacturer.
“We are thrilled to partner with Damotech as it embarks on its next chapter of growth. Damotech’s differentiated solutions in warehouse safety and reputation for market innovation closely align with Vance Street’s strategy of supporting best-in-class engineered-solution businesses with a core mandate around safety,” said Steve Sandbo, a partner at Vance Street. “Together with Damotech’s management team and Mountaingate, we are excited to invest in the company’s continued growth and expansion, while preserving the culture and mission that have made Damotech such a trusted and respected partner in the industry.”
“We are excited to partner with Eric and his team to support growth in new geographies and product categories while also targeting strategic M&A to accelerate those initiatives,” said Yousaf Tahir, a principal of Vance Street. “Vance Street’s ability to leverage our prior experience in safety-oriented industrial technology businesses makes Damotech a great fit.”
Vance Street Capital makes control investments in North American companies with enterprise values between $30 million and $350 million and EBITDA of $3 million to $30 million. Key sectors of focus include medical technology, life sciences, industrial technology, and aerospace & defense. The firm is headquartered in Los Angeles with an additional office in Dallas.
Mountaingate, based in Denver, invests in companies that have from $5 million to $25 million in EBITDA and are active in the marketing services, specialty manufacturing, specialty distribution, and business services sectors. The acquisition of Damotech is Vance Street’s sixth investment out of Vance Street Capital IV LP, the firm’s fourth fund, which closed at its $775 million hard cap in May 2024.
“We are thrilled to partner with Damotech as it embarks on its next chapter of growth. Damotech’s differentiated solutions in warehouse safety and reputation for market innovation closely align with Vance Street’s strategy of supporting best-in-class engineered-solution businesses with a core mandate around safety,” said Steve Sandbo, a partner at Vance Street. “Together with Damotech’s management team and Mountaingate, we are excited to invest in the company’s continued growth and expansion, while preserving the culture and mission that have made Damotech such a trusted and respected partner in the industry.”
