On Our Radar: Deals we are paying attention to for their impact on industry.

Fuel systems manufacturer Stanadyne announced on April 9 that it has acquired Pure Power, a maker of diesel fuel injectors and turbochargers for an undisclosed amount.

Stanadyne is a portfolio company of private equity giant Kohlberg & Company. The Windsor, Conn.-based company produces fuel pumps, injectors and other highly engineered components for vehicles, off-road diesel engines and fuel injection equipment.

Pure Power was among the holdings of private equity firms Kensington Capital Partners and The Smithfield Group Limited. The firms acquired the Columbia, S.C.-based company in 2016 from Navistar International, a publicly traded holding company focused on the automotive industry. Kensington has also invested heavily in the automotive industry and publishes an automotive newsletter, The Motor Weekly.

In a press release, Kensington President Justin Mirro praised the deal, saying that the combined company would create “a powerful OEM and aftermarket supplier of complete fuel systems, with market-leading technology in diesel fuel injectors and high-pressure fuel pumps.”

Stanadyne CEO David Galuska called Pure Power’s expertise “a perfect fit for our business,” adding, “This transaction provides us the opportunity to better leverage our market-leading technologies, global presence, business processes and products to our customers across all channels.”

The purchase comes amid encouraging news for producers of diesel fuel injectors, which deliver fuel to engine cylinders with precise timing. A Global Info Research report predicts that the market for diesel fuel injection systems will grow 2.3% compounded annually (CAGR) over the next five years.

Even though only about 3% of U.S. cars and light trucks use diesel fuel, nearly half of these types of vehicles in Europe use diesel and the fuel is more common in industrial applications.

Allied Market Research has predicted that the market for turbochargers will grow 11.1% CAGR from 2016 to 2022.

James Peter Rubin is a veteran journalist who has written and edited for CapitalWatch, ThirtyK, TheStreet.com, Forbes and the Economist Group, among other media outlets.