IndyCar transmission supplier sold

Xtrac senior management
Xtrac senior management

Inflexion Private Equity today announces that funds managed by Inflexion have agreed the buyout of Xtrac Ltd, a world leader in the design and manufacture of high performance transmissions for the motorsport and automotive industry.

Xtrac supplies most of the world's top motorsport teams in both two and four-wheeled formulae across the globe, from MotoGP to Formula 1TM. The business enjoys strong EBITDA growth; over 80 per cent of the British manufacturer’s revenue is generated through exports, particularly for high performance automotive applications including hybrids and electric vehicles.

Inflexion is backing Xtrac’s well established management team, who will remain with the business. Inflexion’s investment will help fuel Xtrac’s future expansion, supporting its rapidly growing high-performance road car division and increasing Xtrac’s team of 330 in the UK and US. Inflexion will support the extension of Xtrac’s factory and purchase of additional world class machinery, accelerating the development of the next generation of high-end automotive transmission systems and advancing its capabilities in hybrid and electric vehicles.

Adrian Moore managing director of Xtrac, commented: “We are proud of the leading global business Xtrac is today; persistent innovation and exceptional customer service remain our highest priorities. Inflexion shares our values; its investment will accelerate our ambitious growth strategy, developing the next generation of high-end automotive transmission systems and expanding our coverage of the high-performance hybrid and electric car transmission market. This partnership with Inflexion supports Xtrac’s ethos of employee ownership, and our team look forward to a new chapter in the continuing development and growth of our company."

Simon Turner, managing partner at Inflexion, commented: “We are backing a highly experienced management team with serious ambition. Xtrac is a truly exciting business, leading its market with superior design capabilities and a blue-chip global client base. We bring experience from across the specialist engineering sector with businesses such as Shimtech and Aspen Pumps, and an extensive track record in growing teams to promote sustainable growth. We are delighted to partner with the Xtrac team."

The Inflexion deal team comprised John Harper and Henry Arundel, both of whom will join the board at acquisition. Xtrac was advised by Cavendish Corporate Finance LLP.

About Inflexion

Inflexion is an award-winning UK mid-market private equity firm, investing equity of £10m to £150m in high growth, entrepreneurial businesses with ambitious management teams and working in partnership with them to accelerate growth. A mid-market specialist with bespoke teams and dedicated capital, Inflexion backs majority or minority investments in the lower mid-market, mid-market buyouts and provides minority solutions for larger mid-market companies through its dedicated Partnership Capital offering.

Investing across all sectors from offices in London and Manchester, Inflexion also has experts in Bangalore, Sao Paulo and Shanghai dedicated to portfolio development, enabling investee companies to benefit from privileged access to these fast growth markets. The firm has in-house digital expertise, invests in operational improvement and supports growth via acquisition.

Inflexion is currently investing its £650m Buyout Fund IV, £400m Partnership Capital Fund I and £250m Enterprise Fund IV. Recent transactions include the Enterprise Fund buyout of Virgin Experience Days and ProLabs, and Partnership Capital investments in K2 and Medivet. Inflexion also supported add-on acquisitions for Reed & Mackay, CableCom and CloserStill Media.

Earlier this year, Inflexion retained its leading position in Preqin’s 2017 global league for consistently performing buyout funds. Ranked first, Inflexion is the only UK fund to be listed. Inflexion is currently advising circa £2 billion on behalf of its investors, read more at www.inflexion.com

About Xtrac

Xtrac is a world-leader in the design and manufacture of high performance transmissions and driveline components for top level professional motorsport and high performance automotive applications, including hybrids and electric vehicles. Xtrac supplies virtually all the world's top motorsport teams, including many of the major factory entrants as well as smaller teams racing in ‘one make’ championships and technology regulated formulae, who use the company’s large range of lower cost transmission products. High performance automotive customers rely on Xtrac’s specialist expertise and reduced lead times particularly in hypercar transmissions, and advanced technology highly integrated transmissions for use in high performance hybrid and electric vehicles.

Based in Berkshire in the UK, and in Indiana and North Carolina in the US, Xtrac is a major ambassador for the UK’s world-renowned motorsport industry. Established in 1984, the company today employs over 330 highly qualified staff to work on global customer programs, supplying transmission and driveline products including gearboxes, differentials and gearchange systems – of which almost 80 per cent is exported to the US, South America, Europe and many other countries around the world.

Xtrac’s award-winning Employee Benefit Trust was established in 1997, when current chairman Peter Digby led an inspiring management buyout that included all the employees. Working with government, industry and academic bodies, Xtrac runs modern apprenticeship schemes, undergraduate and graduate training programs, as well as tailored personal development programs for staff members.

Xtrac works extensively with the high performance automotive sector alongside its traditional heartland of the motorsport industry. The company is aligned with the UK government’s Automotive Council agenda on lightweight advanced transmission systems for low carbon vehicles. High technology customers of its High Performance Automotive business sector rely on its specialist expertise, augmented by the company’s annual investment of at least £2-3 million in research and development, as well as design, engineering and manufacturing resources.

For further information on Xtrac, visit www.xtrac.com.

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