F150 Ecoboost Forum banner

1 - 10 of 10 Posts

·
Registered
Joined
·
6,517 Posts
Discussion Starter #1 (Edited)
Rumored a few weeks ago and officially announced today:


MSDP Group Sold To Holley/Lincolnshire Management
Z Capital Partners has sold the MSDP Group and its subsidiaries to Holley Performance Products (Bowling Green, KY), a portfolio company of Lincolnshire Management, which is a private equity firm headquartered in New York. Terms of the transaction were not disclosed.
El Paso, TX-based MSDP is a performance fuel and ignition systems company. Its brands include MSD, Racepak, Superchips, Edge, Accel and Mr. Gasket.
Since acquiring substantially all of MSDP out of bankruptcy in 2013, Z Capital has transformed the company, including its management team, brand marketing, supply chain network and distribution capabilities, as well as pursued strategic acquisitions – notably, the acquisition of the Accel Performance Group in late 2014.
“My partner, Rick Sullivan, and I are thrilled to announce the addition of MSDP to our portfolio,” Tom Callahan, managing director at Lincolnshire, is quoted as saying in a press release dated Sept. 23. “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.”
Holley’s products include performance carburetors, fuel pumps, intake manifolds, and engine dress-up products for street performance, race, and marine applications. Its brand portfolio is comprised of Hooker Headers, Flowtech Exhaust, NOS Nitrous, Weiand, Earl’s Performance Plumbing, Quick Fuel Technology and Diablosport.
In the aforementioned announcement, Holley CEO Tom Tomlinson said: “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, served as financial advisor to Z Capital.
The sale of MSDP represents the seventh sell-side transaction in the performance automotive aftermarket led by members of the automotive aftermarket team since 2013 and their second transaction this month. The team also advised on the sale of Holley to Lincolnshire in 2014.
 

·
Registered
Joined
·
6,517 Posts
Discussion Starter #2
This thread should probably be in Ecoboost Performance I suppose.
 

·
Registered
Joined
·
2,793 Posts
Sold to a corporate entity that really doesn't care about producing quality parts or has a passion for the hobby.

I would expect less innovation, and more "Made in China".

At least that's what I took away from it.
 

·
Registered
Joined
·
6,517 Posts
Discussion Starter #6 (Edited)
I guess I don't get it. Why did another bite the dust? Is MSD not going to be around anymore? It looks like they were just sold, not closed.
Medic: Basically what Norcal said. Did you note that MSDP had many years ago purchased Superchips and then Edge? Guess how that went? NOT TOO GOOD!

Then, they purchased Accel Performance Group (Mr Gasket) - which is nothing BUT a bunch of Chinese re-boxed crap. Nothing, like literally NOTHING is actually "made" in that Cleveland, OH facility.

What happens is....investment banker groups (hedge fund guys as Trump calls them) buy these companies to cannibalize competetion. They don't know, nor do they care to know about the industry they're in. They only need to know enough to see a short to mid term profit when they turn around and sell them again (and again). Eventually, the resources for true product development are drained, the best minds get disgusted and leave, and the companies falter. Hide and watch. Seen it too many times in my years of doing my job.


Sold to a corporate entity that really doesn't care about producing quality parts or has a passion for the hobby.

I would expect less innovation, and more "Made in China".

At least that's what I took away from it.
 

·
Registered
Joined
·
6,830 Posts
Same **** that US Steel in ****sburg is doing to the once great plants they bought up here in Canada. Glad I got out of that mess and moved to ArcelorMittal Dofasco.
 

·
Registered
Joined
·
6,517 Posts
Discussion Starter #8 (Edited)
If you pay close attention to this stuff, you will find a common theme that many of these companies are either purchased IN BANKRUPTCY or purchased to save them FROM bankruptcy (often for a dime on a dollar).

MSDP was in bankruptcy when they were purchased by Z Capital. The primary contributing factors to that situation was that they overpaid for Superchips and Edge and those companies shrunk like Rick Moranis in "Honey I Shrunk the Kids". And all THAT....was set up by the fact that MSD Ignition was sold as a family business to a group of greedy bankers (for a nice fat check) who then form MSDP. MSDP set out to make a quick buck and flip companies, which is how they ended up with Superchips and Edge. But I digress....

Then, MSDP buys Mr Gasket and the merry-go-round just keeps going round and round.

Maybe I should have posted this in "what has pissed you off today". :rolleyes:

there's a verse in the Bible that is often misquoted as "money is the root of all evil" when it actually says "the LOVE of money..." - in other words greed.

<steps off soap box, heads to bourbon store>

Peace.
 

·
Registered
Joined
·
4,749 Posts
...What happens is....investment banker groups (hedge fund guys as Trump calls them) buy these companies to cannibalize competetion. They don't know, nor do they care to know about the industry they're in. They only need to know enough to see a short to mid term profit when they turn around and sell them again (and again). Eventually, the resources for true product development are drained, the best minds get disgusted and leave, and the companies falter. Hide and watch. Seen it too many times in my years of doing my job.
Ahhh ... I forgot that Gordon Gekko is out of prison & back in action.
 

·
Registered
Joined
·
13,047 Posts
So my blinker fluid comes from China now ???????


Sent from my silver iPad Air 1 in a http://www.red.org/en/ smart case using an app called Tapatalky
 
1 - 10 of 10 Posts
Top