Gridiron Buys Magneto & Diesel from Warren Equity

Gridiron Buys Magneto & Diesel from Warren Equity

Gridiron's buy of M&D is its second platform investment for its fifth fund and the third platform investment this year

M&D’s product portfolio includes new and remanufactured cylinder heads, blocks and rods, fuel injectors, and turbochargers

SOURCE: iStock Photo

Gridiron Capital has acquired Magneto & Diesel (M&D), a distributor and remanufacturer of aftermarket parts for diesel engines, from Warren Equity Partners.

M&D’s product portfolio includes new and remanufactured cylinder heads, blocks and rods, fuel injectors, turbochargers, filtration products, and other engine parts.

Source: Magneto & Diesel

The company supports all diesel vehicle types, ranging from light and medium-duty vehicles to heavy-duty commercial trucks and industrial equipment used in the trucking, infrastructure, agriculture, marine, and transportation sectors.

Warren Equity acquired its majority interest in M&D in December 2018 from the Ingram family, who founded the company in 1943 to provide repair services to the shipping and rail industries during World War II. Today, M&D is led by CEO Grant Garrett and is headquartered near Houston in Humble, Texas.

“We take pride in keeping our customers up and running and are excited to leverage Gridiron’s experience in the auto aftermarket and value-added distribution space to expand our capabilities and continue to enhance the customer experience,” said Mr. Garrett. “We had many options in choosing a partner for our next phase of growth, but our shared strategic vision made selecting Gridiron an easy choice.”

“We are honored to partner with Grant and the broader M&D team to build on the company’s almost 80-year legacy of exceptional quality and service to the diesel engine aftermarket,” said Kevin Jackson, a managing partner at Gridiron. “The company is positioned as the partner of choice in a large and highly fragmented market, and we are excited to help the M&D team further accelerate growth.”

Gridiron invests in manufacturing, service, and specialty consumer companies with enterprise values from $75 million to $600 million and EBITDA from $10 million to $60 million. Sectors of interest include branded consumer, business-to-business and business-to-consumer services, and niche industrial. In December 2020, New Canaan, Connecticut-based Gridiron held a hard-cap and oversubscribed closing of its largest fund, Gridiron Capital Fund IV LP, with $1.35 billion of capital.

“With a leading position across attractive geographies, world-class technicians and customer service, a reputation for excellence, and a proven M&A track record, M&D is a truly unique platform with numerous opportunities for both organic and acquisitional growth,” said Chris King, a principal at Gridiron.

Warren Equity invests from $5 million to $40 million in North American-based companies that have from $3 million to $15 million of EBITDA and total enterprise value of less than $150 million. Sectors of interest include industrial, infrastructure, and business services. In May 2021, Warren Equity, after just two months of fundraising, held a hard cap close of its third fund, Warren Equity Partners Fund III LP, with $673 million of capital. The firm was founded in mid-2015 by Steven Wacaster, Scott Bruckmann, and Henrik Dahlback and is headquartered in Jacksonville Beach, Florida.

Piper Sandler was the financial advisor to M&D on this transaction.

© 2022 Private Equity Professional | September 7, 2022

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