Aerospace and defense holding company (private investment firm)
Diatom Capital
- HeadquartersCincinnati, OH S7
- Websitediatomcapital.com
- Last verifiedNovember 3, 2026
At a glance
| Revenue range | $1M to $25M S4 |
|---|---|
| Deal types | Platform, Add-on S4 |
| Sectors | Industrial & Manufacturing |
What Diatom Capital buys
Diatom Capital is a Cincinnati private investment firm that acts as a holding company for small aerospace and defense businesses. It is part of Foxhole Equity, a Greater Cincinnati investor in operating companies and real estate. Its target is a company with $1 million to $25 million of revenue: regional maintenance providers for air cargo containers and ground support equipment, aircraft and component repair shops, and niche manufacturers with aftermarket work. It favors founder-led businesses facing succession, corporate carve-outs and neglected divisions.
It takes majority or control positions and will accept a founder rolling over equity. Companies it buys have kept their own names and sites while drawing on shared services and a common operating playbook. It owns three today: Diatom Aviation, Midwest Aero Support near Rockford, Illinois, and Industrial Electronics Services in Gray, Tennessee, the last two announced in July 2025. Diatom does not publish a check size, an EBITDA minimum or the size of its capital base.
Recent deals
Announced in the 24 months before November 3, 2026.
| Date | Company | Type | Sector | Source |
|---|---|---|---|---|
| Jul 2025 | Industrial Electronics ServicesGray, Tennessee electronics design, manufacturing and lifecycle services business; Diatom's second acquisition of 2025 | Add-on | Industrial & Manufacturing | Source |
| Jul 2025 | Midwest Aero SupportAircraft component repair station near Rockford, Illinois; closed June 30, 2025 and kept its brand | Add-on | Industrial & Manufacturing | Source |
Portfolio by sector
From the firm's portfolio page S5.
Industrial & Manufacturing
- Diatom Aviation
- Midwest Aero Support
- Industrial Electronics Services
Greymont’s take
How Diatom Capital fits a seller
Diatom fits the founder of a small aerospace repair or manufacturing shop who is thinking about succession and wants the business to keep its name. Midwest Aero Support and Industrial Electronics Services both kept their brands and facilities after being bought. The $1 million revenue floor means even a very small shop can start a conversation. The leadership includes operators such as Burt Mattice, formerly of Hartzell Propeller, so expect hands-on changes to systems, pricing and processes.
Diatom's money comes from what it calls Foxhole Equity's long-term capital base, not a fund with a published size. An owner should ask how the purchase would be financed and how much of the price is paid at closing. Ask too what a rollover would look like, and how shared services would change daily work.
Questions owners ask
What size of business does Diatom Capital buy?
Its acquisition criteria target aerospace and defense companies with $1 million to $25 million of revenue. It does not publish an EBITDA minimum or a check size.
Does a business keep its name after Diatom buys it?
In both 2025 deals, yes. Midwest Aero Support stayed near Rockford, Illinois and Industrial Electronics Services stayed in Gray, Tennessee, each operating under its existing brand.
Can a founder keep a stake when selling to Diatom?
Its criteria list founder rollovers alongside majority and control deals, so keeping some equity is an option it says it will consider. It also describes its process as confidential and founder-friendly.
Who owns Diatom Capital?
Diatom describes itself as a Foxhole Equity company, supported by that group's long-term capital. Foxhole Equity is a Greater Cincinnati private investment firm with interests in operating businesses and real estate.
Sources
- S1Diatom Capital home page Accessed November 3, 2026
- S2Diatom Capital: Who We Are Accessed November 3, 2026
- S3Diatom Capital: What We Do Accessed November 3, 2026
- S4Diatom Capital: Acquisition Criteria Accessed November 3, 2026
- S5Diatom Capital: Portfolio Accessed November 3, 2026
- S6Diatom Capital: News & Events Accessed November 3, 2026
- S7Diatom Capital Acquires Midwest Aero Support (July 1, 2025) Accessed November 3, 2026
- S8Diatom Capital Acquires Industrial Electronics Services (July 22, 2025) Accessed November 3, 2026
Compiled by Greymont Advisors from public sources, including the firm’s own website and press releases. Greymont is not affiliated with Diatom Capital. Figures are as reported on the dates shown and may have changed. Request a correction