Industrial Service Solutions Acquires MSHS Pacific Power Group

Industrial Service Solutions (ISS) has acquired MSHS Pacific Power Group, capitalizing on the acquisition to secure a substantial $759 million U.S. Navy contract through the Military Sealift Command (MSC). This move underscores the significance of incorporating MRO (Maintenance, Repair, and Overhaul) capabilities to meet the demanding requirements of supporting the Navy's extensive logistics operations.

In February 2026, ISS expanded its MRO capabilities by acquiring MSHS Pacific Power Group. This strategic move brought with it over 450 technical personnel across more than 10 locations, alongside a robust network of over 150 OEM relationships. MSHS Pacific Power Group, with its established expertise in marine power systems honed over a 60-year history, significantly bolstered ISS's portfolio. Now, under this indefinite-delivery/indefinite-quantity contract, work will extend through June 2031, focusing on diesel engine maintenance and repair for crucial non-combatant naval vessels — a backbone of U.S. naval power.

MSHS Pacific Power Group's selection as one of two awardees for the contract is evidence of ISS’s strategic acumen. The acquisition was not merely a growth tactic but a calculated investment into the defense sector, allowing ISS to integrate specialized marine expertise critical for servicing U.S. Coast Guard and other national assets. This contract underscores ISS’s pivotal role in sustaining MSC’s fleet readiness, enhancing its partnership with the Navy through reliable and high-quality service delivery. Pete Jacobs, President of MSHS Pacific Power Group, emphasized that the award is a testament to the company’s commitment to supporting Navy operations globally.

The acquisition and subsequent contract are poised against a backdrop of a robust and expanding global defense equipment MRO market. Estimated to grow from $84 billion in 2023 to over $126 billion by 2029, the sector's engine component, in which MSHS excels, commands the largest market share. This deal places ISS in a strong competitive position within this burgeoning market space, providing a substantial revenue stream and solidifying its status in the national security domain.

This development emphasizes the broader defense strategy of ensuring operational readiness for U.S. forces. The MSC, which handles the crucial logistics and resupply functions across a fleet of approximately 130 ships, depends on reliable diesel engines to maintain its critical operations worldwide. By partnering with MSHS, the U.S. Navy reinforces the operational resilience of its logistical backbone, ensuring continued global reach and functionality.