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Atkore shares jump 28% as Prysmian agrees $3.8B all-cash buyout
The deal values Atkore at $95 per share, a 30% premium, and is expected to close by year end subject to regulatory approvals.
Atkore Inc. (NYSE:ATKR) surged 28% to a new 52-week high on Monday after it entered into a definitive agreement to be acquired by Prysmian SpA for $3.8 billion in an all-cash transaction.
Under the terms of the deal, Prysmian will buy Atkore’s outstanding shares for $95 each, representing a 30% premium over Atkore’s closing price before the announcement. At intraday trading, Atkore shares reached $93.60, about $1 shy of the offer price, indicating investors were largely pricing in the transaction.
Atkore said the combination would create a stronger platform with greater scale and a broader portfolio of electrical solutions, with management expecting the merged companies to function as a one-stop shop in North America to support electrification and data center roll-outs.
The companies expect the transaction to close by the end of the year, pending regulatory approvals. The sale comes after Atkore reported a 98.3% decline in second-quarter net income to $745,000 from $43.0 million a year earlier, hurt by a $50 million litigation expense tied to prior divestitures and other activities. Meanwhile, net sales rose 8% to $794.8 million, supported by higher sales volume and average selling prices, plus foreign exchange benefits.