Atkore Inc., an electrical products manufacturer, has sold its high-density polyethylene pipe and conduit business to Infra Pipes, contributing $28 million in capital while retaining a 10 percent equity stake. The deal, announced from its Harvey, Illinois base, forms part of a broader strategic portfolio review aimed at sharpening focus on core electrical offerings for commercial, industrial, data center, and solar markets. Atkore anticipates tax benefits and improved adjusted EBITDA margins alongside higher return on invested capital from the transaction.
Transaction Aligns with Disciplined Capital Allocation
President and CEO Bill Waltz emphasized the sale as a reflection of Atkore's commitment to disciplined portfolio management. The company, which posted $2.9 billion in fiscal 2025 sales and employs 5,400 people, views Infra Pipes as a market leader well-suited to grow the HDPE operations. By offloading this segment, Atkore sheds a non-core asset, allowing deeper investment in high-growth areas like data centers and solar infrastructure, where electrical conduits and raceways drive demand.
Financial Terms and Market Position
Atkore's current market capitalization stands at $2.15 billion, with its return on invested capital at 7 percent and analysts forecasting profitability this year. InvestingPro analysis flags the stock as undervalued based on fair value metrics. Citi acted as exclusive financial advisor, with Debevoise & Plimpton LLP handling legal counsel, underscoring the structured nature of the deal.
Strong Recent Performance Bolsters Outlook
First-quarter fiscal 2026 results exceeded expectations, with earnings per share of $0.83 against a $0.64 forecast and revenue of $655.5 million topping $650.09 million projected. This marked Atkore's first earnings beat in two years, fueled by higher volumes, pricing power, and EBITDA margin expansion. RBC Capital subsequently lifted its price target from $64 to $71 while holding a Sector Perform rating, signaling confidence in Atkore's operational momentum as it refines its business mix.
