Truck Hero logo image

Truck Hero, Inc.

Details

Sector(s) | Subsector(s) Business Services, Consumer | Auto-Related Services, Ecommerce/Direct to Consumer, Vertical Brands, Wholesale Branded Goods
Investment Year 2014
Status Current
Location Ann Arbor, MI
Region North America

Truck Hero is a designer, manufacturer and marketer of branded consumer accessories for pickup trucks.

TA has helped Truck Hero:

  • Complete six complementary acquisitions, three of which were sourced by TA
  • Recruit a new CFO, General Counsel, Head of Human Resources and three independent directors
  • Roll out a successful rebranding process and marketing campaign

About Truck Hero

Truck Hero is a designer and manufacturer of branded functional aftermarket accessories for pickup trucks. With state-of-the-art functionality, engineering, quality and design, the breadth of Truck Hero’s product offerings addresses virtually every consumer price point in both the hard and soft truck bed cover categories, as well as bedliners, bumpers, steps, floorliners and a variety of other pickup truck accessories. Designed for security and cargo protection, Truck Hero’s truck bed covers, its main product line, are available in a variety of materials such as vinyl, plastic and metal, and numerous styles, including retractable, folding, roll-up and snap-on units. Truck Hero’s family of brands includes Extang, TruXedo, BedRug, UnderCover, Advantage, Retrax, BAK, A.R.E., N-FAB, Husky Liners, Rugged Liner and two online retailers – AutoCustoms and Real Truck.

The Investment Opportunity

As part of TA’s industry-based investment origination efforts, we became familiar with Truck Hero as an attractive investment opportunity. TA believed that Truck Hero’s management team and product offerings made it an ideal platform company from which to build a diversified truck accessory company within a fragmented marketplace. In July 2014, TA partnered with management to complete a majority investment in Truck Hero.

Adding Value to Scale Growth

With its high-quality distribution network and longstanding customer relationships, Truck Hero had a strong foundation, but it was seeking a strategic partner to help the company enter its next phase of growth. Truck Hero welcomed TA as an investor because of the firm’s track record of providing valuable operational and financial guidance to help businesses grow and reach their full potential.

TA assisted Truck Hero in evaluating several strategic options and growth drivers, including the identification of potential acquisition targets, which resulted in the completion of six accretive acquisitions, three of which were sourced by TA. TA’s Strategic Resource Group identified and recruited key senior executives to further strengthen the breadth and depth of the Truck Hero team. In addition, TA played a key role in Truck Hero’s rebranding initiative in January 2016 to align the company’s long-term corporate strategy with its consumer-driven advertising and marketing programs. Since TA made its investment in the company, Truck Hero has grown in excess of 15% organically per year through new product innovation and improved penetration of the pickup truck market.

Today, Truck Hero has more than 3,200 employees and operates ten manufacturing facilities and three distribution facilities across the United States. The company has received over 95 patents on its designs and engineering, creating an intellectual property portfolio and barriers to entry from competition. Truck Hero sells its products through a variety of distribution channels, including warehouse distributors, specialty retailers, new and used pickup truck dealerships, eCommerce sites, direct-to-consumer through its two online retailers and pickup truck manufacturers. In April 2017, TA monetized part of its investment in the company when it sold a portion of its stake to private equity firm CCMP Capital Advisors. As an active minority investor, TA continues to work closely with Truck Hero as the company expands and diversifies its products.

All statistical and financial metrics are as of September 30, 2017.

Case studies have been selected for illustrative purposes for management teams of growth companies considering a partnership with TA and should not be considered an offer or solicitation of services or an actual or implied endorsement of TA or any security, investment or portfolio company. The portfolio companies highlighted are not representative of all current and prior investments of TA. A list of investments for the past 25 years is available on this website.

In the News

Apr 03, 2017

Truck Hero Acquired by CCMP Capital

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Jul 29, 2014

TA Associates Announces Majority Investment in THI

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