Private equity-backed Holley Performance Products has acquired MSDP Group LLC from Z Capital Partners for an undisclosed amount, as M&A in the auto parts market continues.

MSDP Group, headquartered in El Paso, Texas, designs, develops, tests and manufactures auto parts and related products, including ignition controls, fuel injection systems, coils, timing accessories, spark plug wires and other accessories. The company owns the MSD, Racepak, Superchips, Edge, Accel and Mr. Gasket brands, among others. Terms of the transaction were not disclosed.

MSDP has been backed by the private equity arm of asset manager Z Capital Partners (known as Z Capital Group) since December 2013, when the firm bought the business out of bankruptcy. Z Capital executed the deal through then portfolio company Hot Rod Brands. Under Z Capital, MSDP acquired Accel Performance Group in December 2014.

Bowling Green, Kentucky-based Holley manufactures performance fuel and exhaust systems for cars used for Nascar races and other events, and expects the acquisition to expand its brand offerings. The buyer is backed by New York private equity firm Lincolnshire Management, which invested through Lincolnshire Equity Fund IV in 2013. The firm has about $1.7 billion in capital under management.

Jefferies advised Z Capital on the deal.

Auto parts M&A has been heating up, as car sales have risen globally. Recent deals have come from Sentinel Capital Partners, which picked up Driven Performance Brands earlier in September; and Aviation Industry Corp. of China (AVIC), which bought Henniges Automotive Inc. from Littlejohn & Co., also in September. 

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