Southwest Data Products has been sold to Nucor

Southwest Data Products

Headquartered in San Bernardino, California, Southwest Data Products (SWDP) is a full-service manufacturer and licensed installer of comprehensive, branded data center infrastructure solutions, including airflow containment, server enclosures, pathway support structures, security caging and high-value accessories, to the world’s largest hyperscalers, colocation providers and data center operators. For more information, please visit www.swdp.com.

The Deal

SWDP, a California-based portfolio company of Montage Partners, has been sold to Nucor Corporation, a publicly traded steel and steel products producer. Since Montage Partners’ investment, SWDP has grown revenue by 5x. During this time, the company expanded into three new products lines (cage, containment and POD structures), streamlined manufacturing through process flow optimization and developed the in-house capability to install products for customers, enabling SWDP to deliver products with industry-best lead times through controlling the process from design to install, ensuring a single point of responsibility for customers. SWDP also experienced historic backlog levels and is expanding into a new facility to support ongoing growth of the business. The acquisition of SWDP scales Nucor’s solutions offering in the rapidly growing data center market, particularly for airflow containment structures, enclosures, security caging for data centers and installation services. SWDP’s compatibility with the Nucor Warehouse Systems division will deliver significant value for both companies’ customers and accelerate growth opportunities. Lincoln International served as the exclusive financial advisor to Montage Partners and SWDP in connection with the sale process.

Our Perspective

Brian Goodwin, Lincoln International Managing Director, commented, “This transaction represents another great example of the strong interest from both corporate and financial investors to invest in the growing trends of cloud infrastructure and artificial intelligence. We wish SWDP and Nucor great success as they continue to invest in the platform.”

Montage Partners

Founded in 2004, with offices in Scottsdale, Arizona and Salt Lake City, Utah, Montage Partners is a people-first private equity firm dedicated to helping established businesses reach transformative growth. Montage Partners has invested in 19 companies to date and focuses on helping founders build internal resources to accelerate growth through strategy, marketing, acquisitions, recruitment of key leadership positions, and accounting and finance. Montage Partners invests in companies headquartered in the U.S. or Canada across the business services, consumer, healthcare, industrial, and technology sectors. Above all other investment criteria, Montage Partners invests in exceptional people. For more information, please visit www.montagepartners.com.

Nucor

Nucor and its affiliates manufacture steel and steel products, with operating facilities in the U.S., Canada and Mexico. Nucor’s product offering includes a large range of products made from carbon and alloy steel, utilized in critical industries throughout the economy. Additionally, Nucor is the largest recycler of ferrous scrap in North America. For more information, please visit www.nucor.com.

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