ISS Acquires MSHS & PPG, Forging a Powerhouse in Critical MRO Services

CLEVELAND, OH – February 10, 2026 – In a significant move that reshapes the industrial services landscape, MPE Partners has completed the sale of MSHS & PPG to Industrial Service Solutions (ISS), a portfolio company of Wynnchurch Capital. The transaction, announced today, combines a leading independent provider of power and propulsion solutions with one of the nation's largest industrial service companies, signaling a major consolidation in the maintenance, repair, and overhaul (MRO) sector for critical industries.

MSHS & PPG, headquartered in Fort Lauderdale, Florida, was formed through a strategic merger of MSHS (Motor-Services Hugo Stamp, Inc.) and Pacific Power Group. The company has carved out a vital niche providing comprehensive MRO solutions for high-stakes applications in power generation, marine transport, and national security. The acquisition by ISS is set to create a formidable entity with an expanded service footprint and deepened technical expertise.

The Strategic Fit: Creating an MRO Superpower

The acquisition is a clear strategic victory for Industrial Service Solutions and its private equity backer, Wynnchurch Capital. ISS, which bills itself as the largest independent provider of industrial services in the United States, has an explicit growth strategy centered on strategic add-on acquisitions that broaden its market reach and technical capabilities. The addition of MSHS & PPG fits this mandate perfectly.

ISS offers a wide array of field, shop, and supply services for process-critical equipment like motors, pumps, and valves across industries such as mining and petrochemicals. However, MSHS & PPG brings a highly specialized and coveted expertise in power and propulsion systems—specifically combustion engines and their advanced control systems. This deepens ISS's presence in the lucrative marine and power generation markets while providing a crucial entry point into the national security sector. Furthermore, MSHS & PPG's extensive network of over 150 OEM relationships, including powerhouse brands like Rolls-Royce (MTU), Woodward, and Volvo Penta, represents a significant asset transfer, enhancing ISS's ability to service a wider range of equipment with OEM-authorized parts and protocols.

Wynnchurch Capital, which acquired ISS in December 2022, has been focused on bolstering the platform's market leadership. This acquisition is a direct execution of that vision, creating a more diversified and technically advanced MRO powerhouse capable of delivering a full lifecycle offering, from field service and parts distribution to complete system sales and advanced diagnostics. The combined entity is now better positioned to compete with OEM service divisions, offering a potentially more cost-effective and responsive alternative for clients managing mission-critical assets.

A Blueprint for Value Creation: The MPE Partners Playbook

The successful sale marks a significant exit for MPE Partners, a Cleveland- and Boston-based private equity firm that specializes in the lower middle market. The MSHS & PPG journey under MPE's ownership serves as a compelling case study in the firm's value creation strategy, which hinges on transformative mergers and disciplined operational investment.

MPE's strategy began with the foundational merger of two highly respected brands, MSHS and Pacific Power Group, which had complementary geographic footprints and service capabilities. This initial move created a national leader where two regional players once stood. Following the merger, MPE focused on targeted investments to build a more robust and scalable platform.

"We are proud of our partnership with the MSHS & PPG team in creating a leading independent MRO solutions provider in this industry," said Joe Machado, Partner at MPE Partners. "Our strategy centered on the transformative merger of two highly respected brands with complementary capabilities, followed by disciplined investments in technical talent and infrastructure."

This approach paid dividends, enhancing the company's service delivery and strengthening its relationships with key OEMs. The focus on building a deep bench of technical talent allowed the company to tackle increasingly complex projects, earning it a reputation for reliability in industries where downtime is not an option.

"The dedication of the management team and employees was instrumental in the transformation achieved during our investment," commented Matt Yohe, Partner at MPE. "MSHS & PPG has earned a reputation as the go-to partner for complex power and propulsion applications, driven by deep technical expertise and an unwavering commitment to customer success. We're confident this strong foundation will serve the Company well in the future."

Riding the Wave: The Booming Market for Specialized MRO

This acquisition is not happening in a vacuum. It taps into powerful trends driving growth in the global industrial services market, which is projected to grow from around $49 billion in 2026 to over $90 billion by 2034, according to Fortune Business Insights. The primary drivers of this expansion are an intense focus on operational efficiency and the high cost of equipment failure.

In sectors like power generation, marine shipping, and defense, asset uptime is paramount. As equipment becomes more technologically complex and infrastructure continues to age, the demand for sophisticated, specialized MRO services has surged. Companies are increasingly shifting from reactive repairs to proactive and predictive maintenance strategies, leveraging IoT sensors and AI-driven analytics to anticipate failures before they happen. This requires a level of technical expertise that many companies cannot maintain in-house, creating a robust market for third-party specialists like ISS and MSHS & PPG.

Furthermore, stringent regulatory and environmental standards in these industries necessitate meticulous maintenance and documentation, reinforcing the need for expert service partners. The one-stop-shop model offered by MSHS & PPG—spanning field service, workshop overhauls, parts, and controls—is particularly attractive to clients looking to streamline vendor management and ensure seamless support for their critical systems.

The Path Forward

While the financial terms of the transaction were not disclosed, the strategic value is clear for all parties involved. The deal was managed by a team of leading advisors, with Citizens Capital Markets & Advisory serving as the exclusive financial advisor to MSHS & PPG, BakerHostetler providing legal counsel, and Alvarez & Marsal handling financial due diligence.

For the leadership and employees of MSHS & PPG, the move represents an opportunity to scale their impact as part of a larger national platform. David Santamaria, President & CEO of MSHS & PPG, expressed optimism about the future.

"MPE proved to be the ideal partner to support our ambitious growth plan," said Santamaria. "Together, we strengthened our OEM relationships across multiple platforms, enhanced our service delivery capabilities, and built a talented team dedicated to responsiveness and quality. This foundation positions us well as we join forces with ISS to better serve our customers and pursue exciting opportunities ahead."