Hot Rod Brands, an affiliate of Z Capital Partners, has bought MSD Performance Group. No financial terms were disclosed; however, the transaction is slated to close this week. The acquisition was part of a bankruptcy auction. Headquartered in El Paso, Texas, MSD Performance Group is a provider of vehicle aftermarket performance parts.
LAKE FOREST, Ill., Dec. 16, 2013 /PRNewswire/ — Z Capital Partners, L.L.C. (“Z Capital”), a leading private equity firm that makes controlling investments in companies in need of revitalization or restructuring, today announced that Hot Rod Brands LLC, an affiliate of Z Capital has acquired MSD Performance Group (“MSDP”), one of the world leaders in vehicle aftermarket performance parts. MSDP sells products under the MSD, Racepak, Powerteq, Edge and Superchips brands. The transaction is scheduled to close this week.
The acquisition was part of a Section 363 Bankruptcy auction and was approved on November 26, 2013. MSDP filed a voluntary Chapter 11 bankruptcy protection petition on September 6, 2013.
“MSDP is now well positioned for the future” said Ron Turcotte, CEO of MSDP. “In recent years, we have expanded our portfolio of products and technology, and the Z Capital acquisition will allow for an even greater ability to serve our customers with new, innovative product offerings. With a restructured balance sheet, major reduction in debt and an engaged owner, MSDP is poised for positive internal growth as well as growth through focused acquisitions.”
“We are excited to complete this acquisition,” said James J. Zenni, President and Chief Executive Officer of Z Capital. “As an industry leader in the automotive performance aftermarket for over 40 years, we believe that MSDP is well positioned for future success. We are committed to supporting MSDP’s strategy and remain as dedicated as ever to enhancing the business. We look forward to working with the talented MSDP leadership team to expand into new markets, introduce new products, and propel MSDP’s path of future growth.”
About Z Capital Partners
Z Capital Partners, L.L.C. is a leading private equity firm with approximately $1.2 billion regulatory assets and committed capital under management that makes constructive, control investments in distressed middle-market companies that require turnaround, restructuring, or bankruptcy or are otherwise special situations. Z Capital invests in companies challenged by the need to effect immediate changes to their financial structure and or business model and leverages its operational expertise in actively working with management teams to enhance enterprise value.
Z Capital’s Investment team has more than a sixteen year track record investing in distressed private equity and credit related strategies and in excess of 200 years combined experience. Industries in which the principals of Z Capital have invested include consumer products, steel, steel processing, agriculture, gaming, leisure – real estate, manufacturing, specialty services and automotive.
Z Capital portfolio companies currently have aggregate worldwide annual revenues of approximately $3 billion, sell products in 98 countries, and employ 26,000 associates directly and through joint ventures.
Z Capital specializes in managing assets in the distressed private equity / special situations and leveraged finance universe.
Z Capital’s investors include prominent global endowments, pension funds, insurance companies, foundations, family offices, wealth management firms and other financial institutions. For more information, please visit www.zcap.net.
About MSD Performance
MSD Performance, Inc., headquartered in El Paso, Texas, operates in the street enthusiast, professional racer and powersports markets where they maintain industry leading market share positions across all of their product categories under the MSD®, Racepak®, Superchips® and Edge® brands. You can shop their products online at www.msdperformance.com, www.powerteq.com and www.racepak.com, or visit one of their many automotive and performance distributors across the country.