Warren Equity Partners, a lower middle market private equity fund, is pleased to announce the acquisition of Magneto & Diesel Injector Service, Inc. (“M&D Distributors” or the “Company”). M&D Distributors, based in Humble, Texas, is a leading aftermarket distributor of mission-critical parts and components for maintaining and repairing diesel-powered engines within primarily Texas, Oklahoma, and Louisiana. Financial terms of the transaction were not disclosed.
Warren Equity acquired a majority interest in M&D Distributors from the Ingram family, who founded the Company in 1943 to provide repair services to the shipping and rail industries during World War II. The Ingram family invested alongside Warren Equity in the transaction and will continue to be involved on the board of directors going forward.
“We are very excited to partner with the Ingram family and the M&D Distributors team. Under the Ingram family’s long history of ownership, the Company has created a tremendous reputation for quality, service, and technical expertise,” says Steven Wacaster, managing partner at Warren Equity. “We’re excited to support M&D Distributors during its next phase of growth.”
M&D Distributors’ wide product portfolio includes more than 100,000 new and remanufactured fuel injection, turbocharger, engine part, and filtration products from leading OEMs and aftermarket suppliers. M&D Distributors supports all diesel end market applications, including light/medium-duty vehicles, heavy-duty commercial trucks, and industrial equipment (including agriculture, marine, construction, railroad, and oil and gas). M&D Distributors serves over 12,000 customers through eight facilities within the highly fragmented independent customer channel, including mechanics, independent repair shops, authorized service dealers, and individual owner-operators.
“We chose to partner with Warren Equity because of their relevant industry expertise, experience in scaling similar types of businesses, and strong cultural fit,” says Trey Ingram, CEO of M&D Distributors. “Warren Equity differentiated themselves from the beginning of the process, and we’re excited to bring in a partner who will both help us execute upon our growth strategies and uphold the family legacy.”
“Trends such as aging truck fleets, increasingly stringent regulations, and growing focus on fuel efficiency are driving strong demand for and sophistication within the Company’s products,” adds Michael Zhang, vice president at Warren Equity. “We look forward to working with Trey and management to continue growing the Company.”
This transaction is Warren Equity Partners’ eighth platform investment and nineteenth acquisition since its formation in mid-2015. In addition to the acquisition of M&D Distributors, Warren Equity completed three other platform investments in 2018: Meridian Waste, a non-hazardous provider of solid waste collection, transfer, recycling, and disposal services; SIMCO, a provider of corrosion protection services; and StormTrap, a leading designer and engineer of stormwater management systems.