Diatom Capital Acquires Industrial Electronics Services Inc.

Expands Capabilities and Strengthens Market Presence in Aerospace and Defense

CINCINNATI, OH, UNITED STATES, July 23, 2025 /EINPresswire.com/ -- Diatom Capital, a private investment firm focused on accelerating growth and acquiring founder-led businesses in the aerospace and defense sectors, is pleased to announce the acquisition of Industrial Electronics Services Inc. (IES), a technology-based powerhouse providing design, manufacturing, and lifecycle management services for electronic products.

This strategic acquisition expands Diatom Capital’s portfolio in aerospace, which includes Diatom Aviation, a recognized leader in the design, maintenance, and repair of air-cargo containers (ULDs, or Unit Load Devices) and Ground Support Equipment (GSE), and Midwest Aero Support (MAS) an FAA, EASA, and CAA-certified repair station specializing in the overhaul and repair of aircraft structures and components.

With Industrial Electronics Services’ renowned electronic expertise and Diatom Capital’s cutting-edge aviation solutions, the combined team is set to deliver next-level, turnkey infrastructure projects for military, aerospace, energy, transportation, medical, communications, and industrial markets.

“This is more than an acquisition — it’s an alliance built to accelerate innovation in the aerospace and defense sectors," said Burt Mattice, President of Diatom Capital and Diatom Aviation. "Industrial Electronics Services’s stellar reputation and skilled workforce are a natural fit for Diatom’s mission to deliver Aviation Simplified™ by unlocking operational efficiencies and maximizing value for both customers and stakeholders."

Diatom Capital’s investment philosophy is centered on respect for legacy. Rather than reshaping a company’s identity, Diatom seeks to honor what founders have built, partnering with founders and leadership teams to unlock sustainable, long-term growth while celebrating the culture and values that made the business successful.

IES will continue to operate from its facility in Gray, Tennessee, under its existing brand, while now benefiting from Diatom Capital’s global infrastructure, capital investment, and strategic support.

“This merger marks an exciting new chapter for our team, our customers, and the legacy we’ve built,” said Kathy Mullins, CEO of IES. “We’re proud to join forces with a company that shares our values and commitment to quality and on-time delivery to drive our vision for the future. Together, we’re positioned to achieve more than we ever could alone.”

This marks Diatom Capital’s second acquisition this year, following its recent purchase of Midwest Aero Support — a move that expanded the company’s component repair and maintenance capabilities and added to its regional footprint. Together, these acquisitions reinforce Diatom Capital’s commitment to delivering integrated, end-to-end solutions across the aerospace and defense ecosystem.


About Industrial Electronics Services
Founded in 1989, Industrial Electronics Services Inc. (IES) is a technology-based company providing design, manufacturing, and lifecycle management services for electronic products. Serving value-centric clients across military, aerospace, energy, transportation, medical, communications, and industrial markets. IES partners with their customers at every stage of the process—research, development, production, packaging, distribution, and aftermarket support. IES leverages its expertise across their network, bringing our customers’ visions to life with effective, tailored solutions.

About Diatom Capital
Diatom Capital is a private investment firm dedicated to accelerating growth and acquiring founder-led businesses in the aerospace and defense industries. Through its Aviation Simplified™ approach, Diatom invests in and scales aviation manufacturing and service providers—unlocking operational efficiencies and delivering long-term value for all stakeholders.


For more information, please visit diatomcapital.com.
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Melinda S Meyer
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