Atkore Gears Up for Secondary Offering

Atkore International Group Inc. (NYSE: ATKR) recently filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) for a secondary offering. The company intends to offer 8 million shares, with an overallotment option for an additional 1.2 million shares. At the most recent closing price ($21.17), the offering is valued up to $194.76 million.

The underwriters for the offering are Credit Suisse, Deutsche Bank, JPMorgan and UBS Investment Bank.

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. Its mechanical products frame, support and secure component parts in a broad range of structures, equipment and systems in electrical, industrial and construction applications.

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The firm believes that it holds the top or number two positions in the United States by net sales in the vast majority of its products. The quality of its products, the strength of brands and scale and national presence provide what Atkore believes to be a unique set of competitive advantages that positions it for profitable growth.

The company detailed its finances in its most recent filing as follows:

• We grew our net sales and Adjusted net sales at compound annual growth rates, or “CAGRs,” of 1.1% and 3.9%, respectively, to $1,523.4 and $1,515.6 million, respectively;
• We increased our net income by $63.8 million from a net loss position to net income of $58.8 million and increased our Adjusted EBITDA at a CAGR of 25.9% to $235.0 million.

The company will not receive any proceeds from the offering. Instead the selling stockholders will receive all the proceeds.

Shares of Atkore traded down 2.4% at $20.65 Friday morning, with a consensus analyst price target of $23.00 and a 52-week trading range of $14.17 to $22.49.

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