Atkore Files for Secondary Offering

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Atkore International Group Inc. (NYSE: ATKR) recently filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding a secondary offering. The firm intends to sell 8 million shares, with an overallotment option for an additional 1.2 million shares. At the most recent closing price of $20.48, the entire offering is valued up to $188.42 million.

The underwriters for the offering are Credit Suisse, Deutsche Bank, JPMorgan, UBS Investment, Citigroup, RBC Capital Markets and Wells Fargo.

This is a leading manufacturer of electrical raceway products primarily for the nonresidential construction and renovation markets and mechanical products for the construction and industrial markets. Electrical raceway products form the critical infrastructure that enables the deployment, isolation and protection of a structure’s electrical circuitry from the original power source to the final outlet. Mechanical products frame, support and secure component parts in a broad range of structures, equipment and systems in electrical, industrial and construction applications.

Atkore manufactures a broad range of end-to-end integrated products and solutions that are critical to its customers’ businesses. Its broad product offering enables it to bundle and co-load a wide range of products, which simplifies the ordering and delivery processes and streamlines logistics, reducing costs for it and for customers. Atkore primarily serves electrical contractors and original equipment manufacturers, both directly and through an established core customer base of electrical and industrial distributors.

The company estimates that it operates in a $13 billion subset of the $78 billion U.S. electrical products market for electrical raceway products and in a $3.8 billion U.S. addressable market for mechanical products. Both of these markets are highly fragmented and present attractive opportunities for significant growth.

Note that Atkore will not receive any proceeds from this offering. Instead, the selling shareholders will receive all the proceeds.

Shares of Atkore closed Monday at $20.48, with a consensus analyst price target of $23.60 and a 52-week trading range of $14.17 to $22.49.