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Thatcham company buyout aims to accelerate growth

World-leading Xtrac planning major growth in business and people

Thatcham company buyout aims to accelerate growth

A MAJOR expansion of a world leading Thatcham-based company is on the horizon following a multi-million pound buyout.

Designer and manufacturer of high-performance transmissions for the motorsport and automotive industry, Xtrac, has been acquired by funds managed by Inflexion Private Equity. 

Xtrac, based in Gables Way, supplies most of the world’s top motorsport teams, from MotoGP to Formula 1. 

Inflexion, which invests equity of £10m to £150m, said it was backing Xtrac’s well-established management team, who will remain with the business. 

The buyout was announced on Monday and will signal expansion plans for the company’s Thatcham premises.

The investment will help fuel Xtrac’s rapidly-growing high-performance road car division and increase its team of 330 in the UK and its hub in Indianapolis.

Managing director of Xtrax, Adrian Moore, told the NWN that “the mothership is here in Thatcham” and that the company wanted to help put the UK at the forefront of automotive technology for hybrid hyper cars and electric vehicles.

He said: “With this investment we are planning to grow the business.

“We have been growing in the last few years anyway, but this additional support will keep that growth building. 

“Most importantly we invest in our people… we will continue to invest in our people and machinery.”

The funding will support the extension of Xtrac’s factory and purchase of additional world-class machinery, accelerating the development of the next generation of high-end automotive transmission systems and advancing its capabilities in hybrid and electric vehicles.

Mr Moore, said: “We are proud of the leading global business Xtrac is today; persistent innovation and exceptional customer service remain our highest priorities. 

“Inflexion shares our values; its investment will accelerate our ambitious growth strategy, developing the next generation of high-end automotive transmission systems and expanding our coverage of the high-performance hybrid and electric car transmission market. 

“This partnership with Inflexion supports Xtrac’s ethos of employee ownership, and our team look forward to a new chapter in the continuing development and growth of our company.”

Xtrac sees strong earnings before interest, tax, depreciation and amortisation growth, with more than 80 per cent of its revenue generated through exports, in particular for high-performance automotive applications including hybrids and electric vehicles.

Managing partner at Inflexion, Simon Turner, said: “We are backing a highly-experienced management team with serious ambition.

“Xtrac is a truly exciting business, leading its market with superior design capabilities and a blue-chip global client base. 

“We bring experience from across the specialist engineering sector with businesses such as Shimtech and Aspen Pumps, and an extensive track record in growing teams to promote sustainable growth. 

“We are delighted to partner with the Xtrac team.”

The Inflexion deal team comprised John Harper and Henry Arundel, both of whom will join the board at acquisition.  

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