WSJ- Lincolnshire Roughly Triples Its Money on Sale of Holley Performance

Oct 29, 2018

By Laura Kreutzer and Mike Lucas

Lincolnshire Management roughly tripled its money on the sale of aftermarket auto-parts maker Holley Performance Products Inc. to fellow private-equity firm Sentinel Capital Partners, said a person with knowledge of the sale.

New York-based Sentinel said it will combine Holley with portfolio company Driven Performance Brands. Terms of the acquisition weren’t disclosed in a news release.

Holley had retained investment bank Lazard Ltd. to explore a sale, WSJ Pro Private Equity reported in February, citing people familiar with the matter.

Based in Bowling Green, Ky., Holley makes and markets fuel-injection systems, engine tuning and ignition products, carburetors and exhaust systems under the brands Holley, Sniper EFI, MSD, Accel, Diablosport, Superchips, Edge and Hooker Blackheart.

Lincolnshire acquired Holley from Monomoy Capital Partners in 2013. The midmarket firm backed the company out of Lincolnshire Equity Fund IV LP, an $835 million fund that the firm closed in 2008. Under the firm’s ownership, the company completed at least one add-on deal, purchasing car parts maker MSDP Group LLC from Z Capital in 2015.

Sentinel acquired Driven Performance Brands, a Santa Rosa, Calif., maker and marketer of specialty automotive aftermarket performance products, from Dubin Clark & Co. in 2015. The company’s brands include Flowmaster, B&M, Hurst, APR and Dinan.

Sentinel invests in eight sectors: aerospace and defense; business services; consumer; distribution; food and restaurants; franchising; health care; and industrials. The New York firm targets companies with earnings before interest, taxes, depreciation and amortization of up to $65 million.

Lincolnshire, also of New York, invests across various industries, especially niche manufacturing, distribution and service businesses.

Source: buys holley performance products from lincolnshire