Sources very close to the situation told us yesterday that Z Capital has made an offer to purchase MSD Performance, all it’s brands, and all of it’s assets, and that they offer has been accepted by MSD Performance. That doesn’t mean the sale is final, but it is going in front of the Courts today to start the approval process. MSD Performance has cancelled the auction that was to take place today for the purchase of individual MSD Performance brands as a result. You’ll remember that in September MSD Performance filed for Bankruptcy in an effort to control their outstanding debt. MSD was able to make their payments on the debt, but at that payment schedule would never have been able to pay it off. Not a good place to be for a business like MSD Performance.

Z Capital, the group who has made the offer, has been with MSD Performance during this entire process and has gone so far as to buy out all other creditors so that they are the sole owner of all outstanding MSD Performance debt. After watching MSD for the past few months, and seeing that they are a successful company with good cashflow, etc, the management at Z Capital realized that this is the kind of company they needed to add to their portfolio, and what an interesting portfolio it is. Z Capital owns some part of more than 25 companies, including Chevy’s and El Torito Mexican Restaurants, Exide Technologies, Imperial Sugar, TCBY, and Mrs. Fields, just to name a few.

What does this mean for MSD Performance though. Well, we can’t be absolutely sure, but based on what we’ve heard, and what we know about the companies involved, we think this is going to be a REALLY good thing for MSD Performance. Z Capital plans on being an active part of MSD Performance at the corporate level, so that they can maximize fiscal success within the company, but will leave the nerds to their new technology development. No management changes have been announced, and given the success that MSD has experienced in the last few months we hope that none will be forthcoming.

The big thing that matters for you, and me, and everyone else out there that wants Racepak, MSD, and any other MSD Performance products, is that parts are available and shipping and will continue to be available because the company is in better shape today than it has been in years and years. Now that they don’t have outstanding loans to other companies, there will literally be millions of dollars per year that will be available for more product development and more technology rather than just paying interest on loans. That means even more Atomic EFI, Smartwire, BrainWave, and water else the nerds in the back rooms of all the MSD Performance companies have thought of.

Stay tuned as we’ll bring more information to you as we get it!

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