Z Capital exits MSDP Group

Z Capital has sold MSDP Group to Lincolnshire-backed Holley Performance Products. No financial terms were disclosed. Jefferies was financial advisor to Z Capital on the transaction. Based in El Paso, Texas, MSDP is a provider of vehicle aftermarket performance parts.


NEW YORK, Sept. 23, 2015 /PRNewswire/ — Z Capital Group (“Z Capital”), today announced that its private equity management arm, Z Capital Partners, L.L.C. (“Z Capital Partners”), has closed the sale of MSDP Group LLC and its subsidiaries (“MSDP”), a global leader in automotive aftermarket performance and tuning technology, to Holley Performance Products, a portfolio company of Lincolnshire Equity Fund IV (“Lincolnshire”). Terms of the transaction were not disclosed.

Since investing in MSDP in 2013, Z Capital Partners has transformed the company by recruiting an industry-leading management team, enhancing product innovation and brand marketing, optimizing the supply chain network and distribution capabilities, and pursuing strategic acquisitions. Notably, through the acquisition of ACCEL Performance Group in December, 2014, Z Capital Partners established MSDP as the 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 Chief Executive Officer 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 advisor to Z Capital.

About MSDP Group LLC
Headquartered in El Paso, Texas, MSDP was founded in 1970 as a research and development company by two talented electronics engineers. Today, the MSDP team designs, develops, tests and manufactures the entire line of MSDP products including ignition controls, fuel injection systems, coils, timing accessories, spark plug wires and accessories under its portfolio of iconic brands, including MSD®, Racepak®, Superchips®, Edge®, Accel®, Mr. Gasket®, and other brands. http://www.MSDperformance.com/.

About Holley Performance Products
Holley® has been the undisputed leader in fuel systems for over 100 years. Holley carburetors have powered every NASCAR® Sprint® Cup team and nearly every NHRA® Pro–Stock champion for four decades. Now, Holley EFI is dominating the performance world along with its line of exciting products for GM’s LS engine. Holley’s products also include performance fuel pumps, intake manifolds & engine dress–up products for street performance, race and marine applications. Holley provides a complete performance solution with its full spectrum of branded products from the Holley portfolio: Hooker Headers®, Flowtech® Exhaust, NOS® Nitrous, Weiand®, Earl’s Performance Plumbing®, Quick Fuel Technology® and Diablosport®. https://www.holley.com/

About Lincolnshire Management, Inc.
Lincolnshire Management Inc., a leading middle-market private equity firm, manages several funds with aggregate equity totaling approximately $1.7 billion including its most recent Lincolnshire Equity Fund IV. Founded in 1986, Lincolnshire has completed more than 85 investments in middle-market companies. Lincolnshire portfolio investments include or have included such leading companies as Prince Sports, PADI, Wabash, Transcraft, Riddell, AMPORTS and National Pen. Headquartered in New York, Lincolnshire Management has offices in Atlanta, Chicago and Los Angeles.

About Z Capital Group
Z Capital Group, L.L.C. and its subsidiaries, including its private equity management arm Z Capital Partners, are leading global alternative investment managers with approximately $2.3 billion of regulatory assets under management having offices in New York, NY; Lake Forest, IL; and Zurich, Switzerland.

Z Capital manages opportunistic, value-oriented private equity and credit funds. Z Capital operates in an integrated manner, yet has distinct business platforms of private equity and credit funds. Z Capital’s principals have applied this investment philosophy for over 20 years, deploying capital across the balance sheets of industry leading businesses and seeking to create value for their investors throughout economic cycles.

Z Capital’s investors include prominent global sovereign wealth funds, endowments, pension funds, insurance companies, foundations, family offices, and other institutions in North America, Europe, Asia, Africa and the Middle East. http://www.zcapgroup.net/