Inflexion has agreed to sell its investment in Xtrac, a manufacturer of transmissions systems for the motorsport and high-performance sectors, to MiddleGround Capital, a US and European middle market private equity firm.
Inflexion has agreed to sell its investment in Xtrac, a manufacturer of transmissions systems for the motorsport and high-performance sectors, to MiddleGround Capital, a US and European middle market private equity firm.
The announcement marks the fifth exit for Inflexion funds in 2023 following a successful 2022 which saw nine exits completed collectively returning over £1.6bn of proceeds to Inflexion’s investors.
Xtrac was founded in 1984 and specialises in the design and manufacture of high-performance transmissions for the motorsport, hypercar and supercar industries. The business supplies most of the world’s top motorsport teams in both two- and four-wheeled racing categories across the globe, including Sportscar racing, NASCAR and Formula 1. Xtrac is also active in hybrid and electric vehicle developments.
Following the investment by Inflexion in 2017, Xtrac has broadened its product offering and significantly strengthened its electric vehicle transmission capabilities, with the overall revenue contribution of hybrid and electric vehicle transmissions systems more than tripling. In addition, the product offering and customer base has been strengthened to include new hypercar models.
The business expanded its manufacturing capacity with the opening of a new facility extension in 2018, and the opening of the in-house Xtrac Academy apprentice training centre last year.
