Transaction Positions Leading Provider of Power Systems to the Data Center Market for Continued Growth
NEW YORK – July 10, 2024 – Carl Marks Securities, an affiliate of middle market investment bank Carl Marks Advisors, today announced that it has successfully guided JDC Power Systems (“JDC” or “the Company”), an industry-leading provider of mission critical power solutions to the data center market, through a $190 million recapitalization of the Company with private equity firm Madison River Capital.
JDC’s co-founders, Rick Corbin and Joe Mastromonaco, will continue as significant owners of JDC as they guide the Company in expanding its capabilities in the fast-growing data center market, which has seen a rapid acceleration in recent years due to advancements in artificial intelligence (AI) and machine learning.
Headquartered in Armonk, New York, JDC specializes in engineering, procurement, installation oversight, and technical services, including start-up and warranty of mission-critical power systems for data centers. The Company’s expertise in coordinating with utility power grids minimizes the risks of redesigns, delays, or system failures. Given the recent boom in AI, JDC occupies a unique position in the data center marketplace and is well-positioned for continued expansion.
“When we first engaged with JDC, little did we know that JDC’s business would explode, driven by the rapid rise of artificial intelligence and growing need for data centers.” said Warren H. Feder, Partner at Carl Marks Advisors, “JDC’s twenty-four-year history of providing quality service to its longstanding customers and suppliers have allowed them to stand out from their competition and attract top people and new customers in an increasingly demanding market.”
“Carl Marks Securities led us through a very detailed and competitive process. They gave us insights we had not previously considered and showcased our business so potential partners could fully understand our unique value proposition and opportunity for growth,” said Rick Corbin, Co-President of JDC. “Their team was with us every step of the way and guided us to the right partner. We are excited about collaborating with Madison River Capital to drive the business forward and capitalize on market tailwinds,” remarked Joe Mastromonaco, Co-President of JDC.
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About Carl Marks Securities
Carl Marks Securities LLC, the broker-dealer affiliate of Carl Marks Advisory Group LLC (Carl Marks Advisors), provides financial advisory services to middle market companies, including advice related to mergers, acquisitions, company sales, private placement of debt and equity capital and financial restructurings. Carl Marks Securities LLC is a member of FINRA and SIPC. Additional information about Carl Marks Securities LLC can be found at www.carlmarkssecurities.com.
About JDC Power Systems
JDC Power Systems is an electrical systems integrator specializing in mission-critical power distribution and control solutions for data centers. Founded in 2000 and based in Armonk, New York, JDC provides comprehensive technical services including engineering, procurement, equipment start-up and installation oversight, ensuring reliability and efficiency in data center construction and operations. www.JDCPowerSystems.com.
About Madison River Capital
Madison River Capital is a private equity firm focused on control buyouts in the lower middle market that partners with founders and management teams to enhance business growth and drive sustainable value creation. MRC leverages deep operational expertise through its deep bench of Operating Executives to support its portfolio companies. Additional information about Madison River Capital can be found at www.mrivercapital.com.
