Thatcham transmissions company Xtrac bought by private equity
Thatcham-based Xtrac, a leading manufacturer and supplier of transmissions for top-level professional motorsport and specialist high-performance automotive applications, has been bought by MiddleGround Capital, a private equity firm investing in middle market B2B industrial and specialist distribution companies. This is MiddleGround's first platform acquisition.
Founded in 1984 and headquartered in Thatcham in the UK, Xtrac is the leading global supplier of professional motorsport and specialised automotive transmission systems across internal combustion engine, hybrid, and electric vehicles, providing in-house manufacturing as well as design and engineering services.
The company employs more than 400 staff, including those trained through Xtrac’s award-winning apprentice and undergraduate schemes, to work on global customer programmes, supplying world-class transmission and driveline products, including gearboxes, differentials, and gearchange systems. It exports around 70 per cent of its manufacturing output to Asia, Australia, Europe, South America, and the US.
READ MORE: Swiss manufacturer makes a significant investment in Maidstone factory
Xtrac’s focus on performance and reliability has helped it become a long-standing supplier to many of the world’s top professional race teams, including teams in Formula One, Formula E, Sportscar and touring car racing globally, world rallying and off-road racing, IndyCar and NASCAR.
The company has also developed relationships with the world’s top hypercar manufacturers, providing transmission and mechatronic systems. In addition to its UK headquarters, Xtrac also has facilities in Indianapolis and Mooresville in the USA from where it provides technical and after-sales support to key USA customers.
John Stewart, MiddleGround founding partner, said: “Xtrac represents an opportunity to partner with the leading provider of high-performance transmission systems for the specialised motorsport and automotive markets,.
“We believe that under Adrian Moore’s leadership, Xtrac is well-positioned for long-term growth and leading the future transition of the motorsport and high-performance automotive industry to hybrid and EV drivetrains by delivering innovative products in a sustainable manner.”
Xtrac CEO, Adrian Moore, said: “Since our establishment, our unwavering commitment to R&D, manufacturing technology, and developing the skills of our people with our award-winning apprentice program has resulted in the development of innovative, industry-leading products that are of critical importance to our customers.
“The whole team at Xtrac in the UK and the USA take pride in our ability to assure our customers that performance and endurance milestones achieved during testing are repeated on the track and during a product’s life cycle by supplying products of the highest quality. By partnering with MiddleGround, we look forward to building on our success and benefitting from their expertise and guidance through this next stage of expansion.”
“We are thrilled to announce this first acquisition for our recently established European office in Amsterdam,” said Alex van Der Have, managing director for investments at MiddleGround. “Xtrac is a great company, and, in light of positive market tailwinds, we see much potential for growth driven, in particular, by burgeoning consumer demand for high-performance transmissions for hypercars and motorsport. With this investment to support growth, customers will certainly benefit from Xtrac’s enhanced capacity and capability.”
MiddleGround launched its Amsterdam office as a base for its European strategy in January 2023. Three managing directors lead that team, Alex Van Der Have, head of investment; Anthony Denaix, head of business development; and Robert Jonkers, head of operations.
Lincoln International provided corporate and capital advisory services to MiddleGround for the acquisition. Clifford Chance LLP served as legal advisor to MiddleGround.
MiddleGround Capital is a private equity firm based in Lexington, KY, with more than $3.3 billion of Assets Under Management.
READ MORE: Visit Hampshire Biz News for bright, upbeat and positive business news from the county
