TriMas Corp. parent of towing equipment supplier Cequent Transportation Accessories, plans an initial public offering (IPO) of common stock to raise up to $230 million, according to documents the Bloomfield Hills, Mich. company has filed with the Securities & Exchange Commission (SEC).
As a result of acquisitions the last few years, Cequent has become a major supplier of towing and hitch systems, trailer components, electrical products, brake systems, cargo racks and other towing and trailering components that are sold under the Draw-Tite, Reese, Tekonsha, Bargman and other brand names.
TriMas was an independent public company from 1989 to 1998, when it was acquired by Metaldyne, then known as MascoTech Inc.
Metaldyne then was acquired by Heartland Industrial Partners LP in 2001. Heartland hired new senior management for TriMas and instructed the team to make the company’s operations more efficient and grow organically and through acquisitions.
TriMas plans to use the proceeds from the IPO to pay off around $164 million in debt and for other general corporate purposes.
The date for the stock sale and what the price per share will be have not been determined. The investment banking firms that would underwrite the offering were not identified.
Metaldyne and Heartland plan to sell some of their TriMas shares through the offering but the amounts have not been determined.
In 2003, TriMas posted a net loss of $30.9 million primarily because it took a noncash charge against earnings to account for impaired goodwill. The company recorded an operating profit of $48.9 million last year on sales of $905.4 million.