Empower Ltd., a special purpose acquisition company owned by private equity firm MidOcean Partners LLP, agreed to merge with Holley Performance Products Inc. in a deal valuing the aftermarket auto parts manufacturer at $1.55 billion.

After the merger completion, Holley will trade on the New York Stock Exchange under the ticker symbol HLLY.

Cash proceeds from the transaction include Empower’s $250 million of cash in trust and a $50 million forward purchase agreement from MidOcean Fund V. Other investors led by Wells Capital Management Inc. and Wasatch Global Investors committed to invest $240 million in the form of a private investment in public equity at a price of $10.00 per share of common stock of Empower immediately prior to the closing of the transaction.

The company expects to use the proceeds from the transaction to invest in Holley’s growth initiatives, reduce existing debt, support marketing and provide additional working capital. The combined company will have an estimated $485 million of net debt on its consolidated balance sheet.

Holley will continue to be led by CEO Thomas Tomlinson and the company's current management team post-merger. Empower CEO Matt Rubel will serve as the company's board chairman.

Sentinel Capital Partners LLC will remain the largest shareholder in the company after the deal closes.

The transaction is subject to the approval of Empower stockholders and other customary closing conditions, including the receipt of certain regulatory approvals. It is expected to close in the second quarter.