Industrial Safety: M&A Across End Markets

Featured Professionals: John Arendale, Mark Brune, Tim Webb, Chris Toussaint, Addison Jones

Safety is an ongoing priority across the industrials market, creating resilient, recurring demand for a range of essential products and services. Throughout this ecosystem, companies attracting investor attention are leveraging technology to better protect people, infrastructure, and systems while reducing legal liability, improving efficiency, and streamlining costs for their customers.

Here, our Industrials Group shares industrial safety themes capturing investor interest, areas with particularly strong M&A momentum, and recent clients that demonstrate the opportunity.

Legally Required, Tech Enabled

Many industrial safety categories are seeing healthy M&A activity due to a variety of powerful themes. For example, aging infrastructure, building automation, the smart city evolution, electrification, and data center expansion are all creating higher demand for safety solutions and a compelling opportunity for investors.

The legally mandated nature of products and services in the sector is a key trait on investors’ radar. “Regulatory requirements for businesses and municipalities are constantly evolving, under greater scrutiny, and becoming more complicated,” says John Arendale, a managing director. “This is driving a nondiscretionary, repeat need for regulatory-driven safety solutions and services across both new and outdated infrastructure.”

Innovation is another important factor generating growth potential and value-creation opportunities in the space. For instance, advanced safety solutions are steadily replacing legacy options thanks to their ability to better safeguard people and property while optimizing ROI. “Organizations and cities are adopting disruptive technology to streamline their approach to safety and establish meaningful efficiencies,” says Chris Toussaint, a director. “These differentiated, tech-enabled providers are poised for expansion and very appealing to investors.”

Meanwhile, connectivity is becoming more critical in many segments like warehouse safety, traffic safety, and fire and life safety. These areas are all moving toward IoT-enabled technology solutions and sensors that improve safety tracking and monitoring in real time. “This increasingly complex and integrated technology will continue to underpin safety systems throughout the landscape,” says Toussaint. “A host of services and aftermarket products are crucial to keep these assets operational, sparking recurring demand and investor interest in many different types of companies.”

Finally, there are a wide breadth of solutions supporting the safety needs of businesses and municipalities, giving investors many ways to participate in the space. Our clients below are great examples of how differentiated companies in attractive verticals are drawing investor attention.

Warehouse Safety: Damotech

Harris Williams advised Damotech, a portfolio company of Mountaingate Capital, on its sale to Vance Street Capital. Damotech offers aftermarket rack safety solutions, including engineering services, proprietary rack safety management software, and built-to-spec repair and protection products.

Damotech’s solutions are rapidly displacing traditional rack replacement methods due to a clear value proposition, a growing focus on warehouse safety, and regulatory-driven tailwinds. And thanks to the company’s scale, it has the unique ability to serve large, national corporations, dealer channel partners, and small, independently operated customers.

After experiencing transformational growth, supported by investments in facility automation and strategic sales team development, Damotech is well positioned for its next phase of expansion. 

Traffic Safety: Logix ITS

Another recent client is Logix ITS, a company focused on traffic and pedestrian safety solutions, which we advised on its sale to TAPCO, a portfolio company of Peak Rock Capital.

Logix ITS has become a leader in the intelligent transportation systems market by integrating software capabilities with its portfolio of connected devices in the field. This approach enhances functionality while delivering an end-to-end solution tailored to modern infrastructure and mobility challenges.

The transaction combines an extensive installed footprint, direct sales model, and a well-known brand with Logix ITS’s specialized technology. As part of the TAPCO platform, Logix ITS is poised to expand its ability to deliver innovative, interconnected solutions that drive safety and efficiency across end markets including transportation, law enforcement, and the private sector.

Fire & Life Safety: Potter Global Technologies

We also worked with Potter Global Technologies, a portfolio company of Gryphon Investors, on its acquisition by KKR. Potter is a global provider of fire safety and emergency communication products that protect people and buildings during emergency situations.

Driven by its scale, deep technical expertise, and focus on innovation, the company has delivered consistent above-market growth. In addition, Potter has leaned on a proven M&A strategy and organic investment in technology and engineering resources to offer a more complete suite of fire sprinkler, fire alarm, and emergency communication solutions.

The fire and life safety space will see ongoing expansion because of its resilience, recurring revenue, strong regulatory tailwinds, and high barriers to entry, and Potter is primed to continue capitalizing on that growth potential.

A Safe Bet

Investors are attracted to the industrial safety space given its pivotal role in developing safer, more efficient businesses and cities. The sector will continue to show resilience and growth, fueled by greater emphasis on reducing workplace and public incidents, aging infrastructure and other major industrials tailwinds, heightened legal requirements, and increased adoption of emerging technology.

“Mission-critical and tech-enabled safety products and services will continue to see heightened demand and investor interest,” says Arendale. “The sector also presents the opportunity to invest in many appealing end markets and applications, and we’re excited to continue playing a meaningful role in its M&A momentum.”

To further discuss M&A potential within industrial safety and technology, please contact our senior professionals.