Truck Hero Incorporated (NYSE: TRUK) expects to raise $199.8 million in its upcoming IPO. Based in Ann Arbor, Michigan, Truck Hero is a company that designs, manufactures and sells branded accessories for new and used pickup trucks.

We previewed TRUK on our IPO Insights platform.

Truck Hero will offer 11.1 million shares at an expected price of $17 to $19. If the underwriters price the IPO at the midpoint of that range, Truck Hero will have a market capitalization of $710 million.

Truck Hero filed for the IPO on October 19, 2015.

Lead Underwriters: BofA Merrill Lynch, J.P. Morgan Securities, Robert W. Baird & Co.

Underwriters: KeyBanc Capital Markets, Raymond James & Associates, Stifel Nicolaus, and SunTrust Robinson Humphrey

Business Summary: Company that Designs, Manufactures and Sells Truck Accessories

Truck Hero designs, manufactures and sells branded accessories for new and used pickup trucks. Their product portfolio consists of private label and branded truck bed covers and accessories such as truck bed covers, bed liners, and truck caps; a line of retractable aluminum slat and hard rolling truck bed covers; custom made fiberglass and aluminum truck caps and fiberglass truck bed covers for the commercial and consumer markets, in addition to storage boxes and bed rails. The company also markets a variety of third-party branded accessories online, such as grill guards, floor mats, steps, towing products, and tool boxes.

(Source)

Some of the brand names include Extang, Truxedo, BedRug, Undercover, Advantage, ReTrax, BAK, and ARE. The accessories are compatible with over 9,000 unique vehicle configurations, and the company notes that it has designed products for nearly every make and model of pickup truck manufactured in North America for 40 years. Their online product lineup comprised over 95,000 SKUs across more than 200 brands.

Truck Hero intends to use the proceeds of this IPO for paying down debt and increasing financial flexibility.

Executive Management Highlights

William Reminder has been President and Chief Executive Officer since November 2007. He also serves on the board of directors. Prior to joining Truck Hero, Mr. Reminder held senior executive positions at Extang Corporation, Strategic Staffing Solutions, Knoppow Industries, and Dee Kay Enterprises. Mr. Reminder holds a Bachelor of Business Administration from Eastern Michigan University.

COO and VP Kelly Kneifl has served in his positions since November 2007. Previously, he held executive positions at the Truxedo Business Unit at Shur-Co, the former parent company of Truxedo. Mr. Kneifl holds a Bachelor of Science from Wayne State College.

Potential Competition: Rhino Linings, Truck Covers USA, The Truck Accessories Group

Customizing pickup trucks is a popular pastime in the US, and many companies design and manufacture products for consumers and commercial clients. These include The Truck Accessories Group, Roll-N-Lock, SnugTop, Bridgeway Enterprises, Truck Covers USA, and Rhino Linings, among others. In the online marketplace, Truck Hero faces additional competition from RealTruck, Auto Customs, U.S. Auto Parts Network, The Pep Boys, Amazon.com (NASDAQ:AMZN) and eBay (NASDAQ:EBAY).

Financial Overview: Increasing Revenues, Profits

Truck Hero provided the following figures from its financial documents for the nine months ended September 30:

As of September 30, 2015:

Conclusion: Consider Buying In

Few consumer deals have been successful YTD; yet 14 deals have brought average first day returns of 29.2%. This is another deal to pay close attention to as it develops.

We are keen on this IPO, largely given the syndicate, solid growth figures, and a generally resilient market this week.

Although less high profile than SQ and MTCH, we are hearing the TRUK deal has room to work.