BOCA RATON, Fla.—Palm Peak Capital completed its second platform investment this year with the corporate carve-out acquisition of Domaille Engineering, a provider of highly advanced equipment and related accessories used to manufacture pre-terminated fiber optic cables, according to a release from Palm Peak Capital.
Palm Peak Capital is a private equity firm that invests in lower-middle market industrial and services companies across North America. Domaille Engineering, founded in 1990 and headquartered in Rochester, Minnesota, was previously a division of ADDMAN Engineering. Domaille is led by an experienced leadership team with deep technical expertise and extensive industry experience, according to Palm Peak Capital.
Domaille operates a state-of-the-art manufacturing facility in Rochester, with capacity to support sustained growth. The company produces innovative equipment and tools used to manufacture advanced, high-bandwidth fiber optic cables. Its diverse customer base includes leading cable assembly houses and commercial clients that serve data centers, telecommunications providers, and other enterprise end markets.
The fiber optics industry is experiencing robust growth, underpinned by accelerating demand from data centers, telecom networks, and the ever-increasing internet of things. Data center expansion—driven by generative AI, continued cloud migration, and surging traffic—is expected to fuel double-digit annual growth in fiber demand through the end of the decade.
In parallel, robust telecom investment is expected to continue through deployment of more fiber-based networks, large-scale fiber-to-the-home subsidies, and rising global bandwidth needs as more products and services become digital.
“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 Palm Peak Vice President Dante Pavone, in the release. “We are excited to partner with Domaille’s CEO Michael Utley and the rest of the team in an effort to accelerate their product innovation and growth.”
“The Domaille team is thrilled to partner with Palm Peak,” said Utley, “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. Together, we are well positioned to enhance our capabilities and continue delivering best-in-class solutions for our customers.”
Lynn Skillen, senior managing director of operations at Palm Peak, added, “We are 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.”