Truck Hero Gears Up for IPO With Pricing Terms

Truck Hero has registered an S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). The company expects to price roughly 11.11 million shares in the range of $17 to $19 per share, with an overallotment option for an additional 1.67 million shares. At the maximum price, the entire offering is valued up to $242.78 million. The company intends to list on the New York Stock Exchange under the symbol TRUK.

The underwriters for the offering are JPMorgan, Baird, Merrill Lynch, Keybanc, Raymond James, Stifel and SunTrust Robinson Humphrey.

This is a fast-growing designer, manufacturer and marketer of branded consumer accessories for pickup trucks. The pickup truck market is large and expanding, driven in part by evolving pickup designs that have increased functionality and versatility, making trucks more suitable as family and lifestyle vehicles. These products include accessories manufactured by Truck Hero sold through multiple channels, primarily truck bed covers, truck caps and bed liners, as well as a broad range of third-party branded vehicle accessories sold online, including floor mats, grill guards, steps, tool boxes and towing products.

The primary products, truck bed covers and truck caps, enclose the beds of pickup trucks, providing for cargo security and weather protection as well as aesthetic enhancement, while bed liners protect truck beds and cargo from damage. These products enhance the functionality and aesthetics of pickup trucks and enable consumers to customize and personalize their vehicles. This portfolio of owned brands, complemented by the online sales of third-party branded products, makes Truck Hero one of the leaders by sales in the pickup truck accessory market.

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In the filing, the company detailed its finances as follows:

• Net sales increased 66% from $114.0 million for the six months ended June 30, 2014, to $189.2 million for the six months ended June 30, 2015.
• Net income increased 80% from $4.1 million for the six months ended June 30, 2014, to $7.4 million for the six months ended June 30, 2015, and adjusted EBITDA increased 52% from approximately $27.5 million to $41.7 million over the same period.
• Net sales were $131.2 million for the period from January 1, 2014, to July 28, 2014 for the Predecessor, $117.2 million for the period from July 29, 2014, to December 31, 2014, for the Successor and $436.2 million for the pro forma year ended December 31, 2014, (unaudited).
• Net income was $(4.5) million for the period from January 1, 2014, to July 28, 2014 for the Predecessor, $4.4 million for the period from July 29, 2014, to December 31, 2014, for the Successor and $(6.2) million for the pro forma year ended December 31, 2014, (unaudited).

The company intends to use the net proceeds from this offering to pay down its debt and for general corporate purposes.

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