This Week's IPOs III: Targa Resouce Partners, Union Street Acquisition, US Auto Parts Network, VeriChip

The last four IPO for this week include: Targa Resource Partners (NGLS), a natural gas limited partnership formed by Targa; Union Street Acquisition Company (USQ.U) a blank check company looking to acquire a business services company; US Auto Parts Network (PRTS) an online auto parts retailer; and VeriChip (CHIP), a healthcare technology company that utilizes RFID systems.

All quotations are from the companies' most recent S-1 filings with links provided for each company.

TARGA RESOURCE PARTNERS (NGLS)
Business Overview (from prospectus)

We are a growth-oriented Delaware limited partnership recently formed by Targa, a leading provider of midstream natural gas and NGL services in the United States, to own, operate, acquire and develop a diversified portfolio of complementary midstream energy assets. We currently operate in the Fort Worth Basin in north Texas and are engaged in the business of gathering, compressing, treating, processing and selling natural gas and fractionating and selling natural gas liquids, or NGLs, and NGL products. Fractionating means separating a mixed stream of NGLs into its constituent products. We intend to leverage our relationship with Targa to acquire and construct additional midstream energy assets and to utilize the significant experience of Targa’s management team to execute our growth strategy.

Offering: 16.8 million shares at $19-21 per share. Net proceeds of approximately $315.3 million will be used to pay off debt and the associated fees for establishing the company's new credit facility.

Lead Underwriters: Citigroup, Goldman Sachs, UBS Investment Bank

Financial Highlights:

Revenues increased by $41.2 million, or 16%, to $290.9 million for the nine months ended September 30, 2006 compared to $249.7 million for the nine months ended September 30, 2005...Product purchases increased by $26.2 million, or 15%, to $205.2 million for the nine months ended September 30, 2006 compared to $179.0 million for the nine months ended September 30, 2005...Operating expenses increased by $2.1 million, or 13%, to $17.9 million for the nine months ended September 30, 2006 compared to $15.8 million for the nine months ended September 30, 2005

UNION STREET ACQUISITION COMPANY (USQ.U)
Business Overview (from prospectus)

We are a recently organized blank check company formed for the purpose of acquiring, through a business combination, one or more operating businesses in the business services industry in North America. To date, our efforts have been limited solely to organizational activities. The business services industry, a subset of the services sector, encompasses companies that undertake the management, delivery or operation of one or more business processes or functions of other companies. Among the areas that we intend to focus on are marketing services, business information services, human capital management, facilities and logistics services and professional services.

Offering: 12.5 million shares at $8 per share. Net proceeds of approximately $100 million dollars will be used to acquire one or more businesses in the business service industry.

Lead Underwriters: Banc of America, Morgan Joseph

Financial Highlights:

We were formed on July 18, 2006, as a blank check company for the purpose of acquiring, through a merger, capital stock exchange, stock purchase, asset acquisition or other similar business combination, one or more operating businesses in the business services industry. We do not have any specific merger, capital stock exchange, stock purchase, asset acquisition or other similar business combination under consideration and neither we, nor any representative acting on our behalf, has had any contacts or discussions with any prospective target business with respect to such a transaction or taken any direct or indirect measures to locate a specific target business or consummate an initial business combination. We intend to use cash derived from the proceeds of this offering, our capital stock, debt, or a combination of cash, capital stock, and debt, to consummate an initial business combination.

US AUTO PARTS NETWORK (PRTS)
Business Overview (from prospectus)

We are a leading online provider of aftermarket auto parts, including body parts, engine parts, performance parts and accessories. Our network of websites provides individual consumers with a comprehensive selection of approximately 550,000 products, identified as stock keeping units or SKUs. We have developed a proprietary product database that maps our 550,000 SKUs to over 4.3 million product applications based on vehicle makes, models and years. Our flagship websites are located at www.partstrain.com and www.autopartswarehouse.com, and our corporate website is located at www.usautoparts.net.

Offering: 10 million shares at $10-12 per share. Net proceeds of approximately $79.3 million will be used to pay off debt, working capital and for addition investment purposes.

Lead Underwriters: RBC Capital Markets, Thomas Weisel

Financial Highlights:

Net sales increased due to a 119.3% increase in our online business, which consists of our e-commerce and online marketplace channels, that was principally driven by the acquisition of Partsbin, which was completed on May 19, 2006. E-commerce sales increased $35.8 million, or 141.5%, from $25.3 million for the nine months ended September 30, 2005 to $61.1 million in the corresponding period of 2006....Online marketplace sales were $7.8 million for the nine months ended September 30, 2005 compared to $11.5 million in the corresponding period of 2006. [ Ed.: Gross profit was $18.1 million for the nine months ended September 20, 2005 compared to $29.7 million for the same period in 2006. ]

VERICHIP CORP. (CHIP)
Business Overview (from prospectus)

We are primarily engaged in the development, marketing and sale of radio frequency identification, or RFID, systems used to identify, locate and protect people and assets. The healthcare industry represents the principal market for our radio frequency identification systems. Our goal is to become the leading provider of radio frequency identification systems in the healthcare industry.

Offering: 4.3 million shares at $6.50-$8.50 per share. Net proceeds of approximately $26.9 million will be used to repay debt, market the company's products, and for general working capital.

Lead Underwriters: Merriman Curhan Ford, Kaufman Bros.

Financial Highlights:

Revenue for the nine months ended September 30, 2006 was $20.3 million, an increase of $11.2 million compared to the comparable period of the prior year.Revenue for the nine months ended September 30, 2005 includes only six months of revenue from VHI (formerly EXI Wireless), which we acquired on March 31, 2005, and revenue from Instantel for the period from June 10, 2005 (the date of acquisition) to September 30, 2005. On a pro forma basis, revenue for the nine months ended September 30, 2006 increased $2.5 million, or 14.0%, to $20.3 million compared to pro forma revenue of $17.8 million for the nine months ended September 30, 2005.

... Gross profit for the nine months ended September 30, 2006 was $11.9 million compared to $5.5 million for the nine months ended September 30, 2005. As a percentage of revenue, our gross profit margin was 58.2% and 60.4% for the nine months ended September 30, 2006 and 2005, respectively.