Atkore Shares Surge Nearly 28% After Agreeing to $3.8 Billion Cash Buyout by Prysmian at $95 a Share

HARVEY, Ill. — Shares of Atkore Inc. jumped nearly 28% in morning trading Monday after the electrical products manufacturer agreed to be acquired by Italian cable maker Prysmian S.p.A. in an all-cash deal valued at approximately $3.8 billion and separately reported stronger third-quarter results.

Under the definitive agreement announced before the market open, Atkore shareholders will receive $95.00 per share in cash. The price represents a premium of about 30% to the stock's closing level of $72.96 on July 31. The transaction implies an enterprise value of roughly $3.8 billion for the company.

Atkore, which makes electrical conduit, cable management systems and related infrastructure products used in commercial, industrial, data center and solar applications, said the deal is expected to close subject to customary conditions, including regulatory approvals and shareholder approval. In light of the pending transaction, the company said it does not intend to update or reaffirm previously issued financial guidance and canceled its previously scheduled earnings conference call.

Prysmian, the world's largest cable manufacturer, described the acquisition as a strategic step to expand its presence in North America and evolve into a broader electrical solutions provider. The combination is expected to create a more comprehensive offering for customers involved in electrification and data-center projects.

"Atkore fits well with our strategy to become more relevant in the United States, where we will become more sizeable and complete," Prysmian Chief Executive Officer Massimo Battaini said.

Prysmian expects the deal to generate approximately $150 million in run-rate pre-tax synergies within three years of closing. The transaction is projected to be high single-digit accretive to earnings per share in the first full year and double-digit accretive once synergies are realized. Financing is planned through a mix of debt, hybrid instruments and equity, including possible use of treasury shares.

Atkore simultaneously released results for its fiscal third quarter ended June 26. Net sales rose 8.1% to $794.8 million from $735.0 million a year earlier, driven by higher volumes, pricing and foreign exchange effects. The Electrical segment led the growth, with sales increasing 10.9% to $578.3 million. Safety & Infrastructure sales edged up 1.3% to $216.8 million.

Adjusted EBITDA increased 4.7% to $104.7 million. Adjusted diluted earnings per share rose to $1.92 from $1.63 in the year-earlier period. On a GAAP basis, net income fell sharply to $745,000, or 2 cents per diluted share, from $43.0 million, or $1.25 per share, primarily because of a $50 million litigation settlement expense and related costs, along with higher transaction expenses tied to the acquisition process.

Gross profit rose, though the gross margin declined to 22.2% as higher input costs outpaced price increases. Management highlighted sequential improvement from the second quarter in net sales, adjusted EBITDA and adjusted earnings per share.

"We were pleased with our third quarter results. Our Net sales, Adjusted EBITDA and Adjusted EPS were all higher versus the prior year and they were sequentially higher from our second quarter," said Bill Waltz, Atkore president and chief executive officer.

The company has faced margin pressure in recent periods from elevated input costs and the lingering effects of legal settlements related to PVC pipe antitrust matters. Earlier in the fiscal year it recorded a substantial settlement liability and has pursued portfolio simplification through divestitures. The third-quarter volume and pricing gains, particularly in the core Electrical business, signaled improving demand conditions in non-residential construction and infrastructure end markets.

Atkore employs roughly 5,400 people and operates about 30 major manufacturing and distribution facilities, primarily in North America, with additional locations in Australia, Europe and New Zealand. For fiscal 2025 the company reported revenue of approximately $2.85 billion and EBITDA of $386 million.

The acquisition continues a pattern of consolidation in the electrical and cable sector as companies position themselves for long-term growth in electrification, renewable energy and data-center construction. Prysmian has pursued larger-scale moves in recent years to broaden its geographic and product footprint. Adding Atkore's conduit, fittings and infrastructure products complements Prysmian's existing cable portfolio and strengthens its ability to serve customers seeking integrated solutions.

Market reaction was swift. Atkore shares opened sharply higher and traded near $93.40, reflecting the cash offer price with a modest discount typical of deals still subject to closing conditions. Trading volume was elevated as investors positioned around the announced terms.

The agreement includes customary deal protections. Completion will depend on the satisfaction of regulatory requirements in relevant jurisdictions and approval by Atkore shareholders. No timeline for closing was detailed in the initial announcements beyond the expectation that the process will proceed in the ordinary course.

For Atkore, the transaction provides shareholders with an immediate and substantial premium after a period of share-price volatility linked to margin challenges and legal costs. For Prysmian, it accelerates North American scale at a time when demand for electrical infrastructure remains supported by data-center expansion, grid modernization and broader electrification trends.

Analysts and investors will now focus on the regulatory review process, the path to realizing the projected synergies, and any further details on integration planning. In the near term, the stock is expected to trade in a relatively narrow range around the offer price as the deal progresses toward completion.

The dual announcement of improved quarterly results and a definitive acquisition agreement resolved much of the near-term uncertainty that had surrounded Atkore's outlook. With sales growth returning and adjusted profitability improving sequentially, the company enters the final stages of its independent public life with clearer visibility into demand trends even as ownership transitions to a larger global parent.