Z Capital Partners, the private equity management arm of Z Capital Group, has closed the sale of MSDP Group LLC and its subsidiaries, a global leader in automotive aftermarket performance and tuning technology, to Holley Performance Products, a portfolio company of Lincolnshire Equity Fund IV. Terms of the transaction were not disclosed.
Since investing in MSDP in 2013, Z Capital Partners says it worked to transform the company, recruiting a leading management team, enhancing product innovation and brand marketing, optimizing the supply chain network and distribution capabilities and pursuing strategic acquisitions. Most notably, through the acquisition of ACCEL Performance Group in December 2014, Z Capital Partners established MSDP as a leader in performance fuel and ignition systems.
“My partner Rick Sullivan and I are thrilled to announce the addition of MSDP to our portfolio,” said Tom Callahan, managing director at Lincolnshire. “Under the leadership of a talented management team, MSDP has developed into a world-class performance automotive business managing great brands and boasting key strengths in both ignition and electronic tuning technologies. MSDP provides the ideal partner for Holley, a Lincolnshire portfolio company that is the leading manufacturer and marketer of performance fuel and exhaust systems. Together, these two iconic franchises, Holley and MSDP, will serve future generations of brand-conscious street performance enthusiasts, hot rodders and racers with innovative new products and category-leading lines of refreshed, rejuvenated and improved versions of existing products.”
James Zenni, president and CEO of Z Capital, said, “We are proud of the significant value we were able to create at MSDP. MSDP’s leading products, strong customer relationships and track record of innovation have allowed the company to enjoy tremendous success. This transaction represents a terrific outcome for Holley Performance, MSDP, Lincolnshire and Z Capital, and we are confident that MSDP will continue to thrive under new ownership.”
“As an industry peer, MSDP provides an invaluable partner for Holley,” said Tom Tomlinson, CEO of Holley Performance Products. “The Holley team is committed to capitalizing on the significant growth opportunities in the automotive performance industry and today, MSDP and Holley are ideally positioned in their respective product segments. MSDP adds powerful, category-leading brands to our existing portfolio of similarly positioned performance brand offerings, better positions us as an undisputed industry leader, and helps meaningfully to ensure that we continue to develop and deliver the best innovative new performance products to all of our customers and value to all our stakeholders.”
The automotive aftermarket team at Jefferies, led by Jonathan Carey and Treavor Hill, acted as financial adviser to Z Capital.