Inflexion is pleased to announce it has agreed to sell its investment in Xtrac Ltd. (“Xtrac”), a market-leading 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 has become the world leader in the design and manufacture of high-performance transmissions for the motorsport, hypercar and supercar industry. 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 at the forefront of 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 was strengthened to include new hypercar models. The business expanded its manufacturing capacity with the opening of a significant state-of-the-art manufacturing facility extension in 2018, opening of the in-house Xtrac Academy apprentice training centre last year, and recent expansion of its US operation, whilst investing in its workforce with the number of highly skilled high-value manufacturing staff and engineers increasing by close to 50% to over 450 staff.
Xtrac’s leadership team have done a phenomenal job in evolving the business to focus on the transition to green with its shift to focus on hybrid and EV transmissions. We wish them all the best for the next chapter of their journey.
In its time under Inflexion’s stewardship, Xtrac achieved three prominent ESG accreditations; (i) the ESGmark® which certifies Xtrac’s commitment to ESG, (ii) the Science Based Targets initiative approved its carbon reduction targets and (iii) has the Living Wage accreditation.
Inflexion have been an incredible support over the last few years, backing our investment in leadership, people and facilities whilst accelerating our expansion into the high-performance hybrid and EV market.