Atkore Inc. Announces Sale of HDPE Pipe & Conduit Business to Infra Pipes

Key Points and Overview

• Transaction: Atkore Inc. (NYSE: ATKR), a leading manufacturer of electrical products for commercial, industrial, data center, and solar applications, has announced the sale of its High-Density Polyethylene (HDPE) pipe and conduit business to Infra Pipes, a North American leader in polyethylene pipeline solutions.
• Strategic Review: The sale is part of Atkore’s ongoing strategic review process and reflects the company’s commitment to disciplined portfolio management.
• Financial Impact: The transaction is expected to be accretive to Atkore’s overall financial profile, specifically for key metrics such as Adjusted EBITDA margins and Return on Invested Capital (ROIC).
• Transaction Details:
  • Atkore will contribute its HDPE business and capitalize the combined business with approximately \$28 million.
  • Atkore will retain a 10% equity stake in the new, larger entity formed with Infra Pipes.
  • Atkore expects to achieve various tax benefits associated with the sale.
• Advisors: Citi served as exclusive financial advisor, and Debevoise & Plimpton LLP served as legal advisors to Atkore for this transaction.
• Company Profile: Atkore reported \$2.9 billion in sales for fiscal year 2025 and employs 5,400 people.
• Information Dissemination: Future updates and announcements regarding company developments and financial performance will be made available through Atkore’s website, press releases, SEC filings, conference calls, media broadcasts, and webcasts.

Potentially Price Sensitive and Shareholder-Relevant Information

• Portfolio Focus: The sale of the HDPE business is expected to further enhance Atkore’s focus on core electrical product offerings, targeted customers, and strategic markets.
• Financial Accretion: Management explicitly stated that the transaction should be accretive to Adjusted EBITDA margins and ROIC, which are key financial metrics closely watched by investors and analysts.
• Ongoing Minority Interest: Atkore will retain a 10% equity stake in the new combined entity, potentially providing future upside if the business performs well under Infra Pipes’ leadership.
• Tax Benefits: Atkore anticipates tax benefits arising from the transaction, which could have a positive effect on net results and cash flow.
• Strategic Relationship: The deal may foster a strong ongoing relationship with Infra Pipes, providing Atkore with continued exposure to the HDPE market segment via its minority ownership.
• Large-Scale Transaction: The \$28 million capitalization of the combined business signals a substantial value transfer and commitment.

Management Commentary

Bill Waltz, President and CEO of Atkore, commented: “The sale of the HDPE business is part of our ongoing strategic review process, and reflects our commitment to disciplined portfolio management. We also expect this transaction to be accretive to Atkore’s overall financial profile for certain key metrics such as Adjusted EBITDA margins and Return on Invested Capital. This transaction further enhances our focus on driving growth around key electrical product offerings, targeted customers and strategic markets. Infra Pipes is a market leader and a strong fit for our HDPE business, and we look forward to building a strong relationship for the future as a minority owner in the new larger entity.”

Forward-Looking Statements

This announcement contains forward-looking statements, including expectations regarding the financial impact of the transaction, anticipated tax benefits, and future business focus. These statements are subject to risks and uncertainties, and actual results may differ materially. Investors are encouraged to review Atkore’s filings with the SEC, including its most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, for a comprehensive discussion of these risks.

Additional Contacts

• Media Contact: Lisa Winter, Vice President – Communications, 708-225-2453, [email protected]
• Investor Contact: Matthew Kline, Vice President – Treasury & Investor Relations, 708-225-2116, [email protected]

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should perform their own due diligence and consult with a financial advisor before making any investment decisions. Forward-looking statements are subject to risks and actual results may differ materially from those expressed herein.

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