Atkore sells HDPE pipe business to Infra Pipes, retains 10% stake
(UI) — Atkore Inc. has agreed to sell its HDPE pipe and conduit business to Infra Pipes, marking a shift away from polyethylene pipeline products as the company refocuses on its core electrical offerings.
As part of the transaction, Atkore will contribute the HDPE business to the new entity and provide about $28 million in capital. The company will retain a 10% equity stake in the combined business.
“The sale of the HDPE business is part of our ongoing strategic review process and reflects our commitment to disciplined portfolio management,” said Bill Waltz, Atkore’s president and CEO. “We expect this transaction to strengthen our financial profile, including adjusted EBITDA margins and return on invested capital.”
Waltz said Infra Pipes is a strong strategic fit for the business and that Atkore plans to maintain a relationship with the company through its minority ownership stake.
“Infra Pipes is a market leader and a strong fit for our HDPE business,” Waltz said. “We look forward to building a strong relationship for the future as a minority owner in the new larger entity.”
The transaction is expected to provide Atkore with tax benefits while allowing the company to focus on growth in electrical infrastructure markets, including commercial, industrial and data center applications.
Citi served as financial advisor to Atkore, while Debevoise & Plimpton LLP acted as legal counsel.
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