Warren Buys Diesel Parts Distributor
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Warren Buys Diesel Parts Distributor

Warren Equity Partners has acquired Magneto & Diesel Injector Service (DBA M&D Distributors).

M&D Distributors is an aftermarket distributor of parts and components for maintaining and repairing diesel-powered engines. The company’s products – totaling more than 100,000 SKUs – include new and remanufactured fuel injection, turbocharger, engine part, and filtration products that are used in light/medium-duty vehicles, heavy-duty commercial trucks, and industrial equipment (including agriculture, marine, construction, railroad, and oil & gas).

The company’s parts are sold to more than 12,000 mechanics, independent repair shops, authorized service dealers, and individual owner-operators that are located primarily in Texas, Oklahoma, and Louisiana. M&D Distributors also provides additional services through its internal rebuilding capabilities as well as part matching, diagnostics, repair, and technical assistance. M&D Distributors operates eight facilities (seven in Texas and one in Louisiana) and is headquartered in Humble, TX (www.mddistributors.com).

Warren Equity acquired the 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 post-closing will continue to be involved on the board of directors.

“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,” said Steven Wacaster, a managing partner at Warren Equity. “We’re excited to support M&D Distributors during its next phase of growth.”

“We chose to partner with Warren Equity because of their relevant industry expertise, experience in scaling similar types of businesses, and strong cultural fit,” said 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.”

Warren Equity invests from $5 million to $40 million in North American-based companies that have from $3 million to $15 million of EBITDA. Sectors of interest include industrial, infrastructure, and business services. The firm is based in Jacksonville Beach, FL (www.warrenequity.com).

“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,” added Michael Zhang, a vice president at Warren Equity. “We look forward to working with Trey Ingram and management to continue growing the company.”

The buy of M&D Distributors is Warren Equity’s 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 Greensboro, GA-based non-hazardous provider of solid waste collection, transfer, recycling, and disposal services (April 2018); SIMCO, a Concord, NC-based provider of corrosion protection services (May 2018); and StormTrap, a Romeoville, IL-based designer and engineer of stormwater management systems (December 2018).

© 2019 Private Equity Professional | January 14, 2019

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