MiddleGround’s European office makes 1st platform acquisition with Xtrac

Xtrac is a manufacturer and supplier of transmissions for professional motorsport and automotive applications.

  • Xtrac is headquartered in Thatcham, UK
  • MiddleGround opened its Amsterdam office in January 2023
  • MiddleGround is a private equity firm based in Lexington, Kentucky

UPDATED. MiddleGround Capital’s European office has completed its first platform acquisition with Xtrac, a manufacturer and supplier of transmissions for professional motorsport and automotive applications. The seller is Inflexion.

No financial details of the transaction were disclosed.

Xtrac is headquartered in Thatcham, UK.

“Increasing consumer interest in motorsport and the continued innovation of the mobility space are driving growth in both markets and creating compelling investment opportunities, particularly in businesses with a culture of innovation that can develop products for increasingly complex vehicles,” said Alex van der Have, managing director and head of the EU Transaction Team. “Specifically, we see a lot of opportunity for players in the high-performance segment of the market that can differentiate through their leading technology, quality, and commitment to customers – all of which attracted us to partnering with Xtrac.”

MiddleGround opened its Amsterdam office as a base for its European strategy in January 2023.

Inflexion invested in Xtrac in 2017. Xtrac is the fifth exit for Inflexion funds in 2023.

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, accoriding to a release.

MiddleGround is a private equity firm based in Lexington, Kentucky with over $3.3 billion of assets under management. The firm makes control equity investments in middle market B2B industrial and distribution businesses.

Inflexion is a mid-market private equity firm that invests £10 million to £400 million of equity in each deal. The firm is headquartered in London and has offices in Manchester and Amsterdam.

Lincoln International provided corporate and capital advisory services, Clifford Chance served as legal advisor, and Alvarez & Marsal served as financial and tax advisors to MiddleGround.

Editor’s Note: This article was updated to add the seller details.