Prysmian completes its 3.8 billion dollar acquisition of Atkore
Prysmian has completed its acquisition of US electrical infrastructure supplier Atkore, paying 95 dollars per share in cash. The transaction carries an enterprise value of about 3.8 billion dollars. Atkore becomes a wholly owned subsidiary, and its shares cease trading in New York. Prysmian plans to consolidate its results from November and targets integration savings over the following three years.
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Cash deal makes Atkore a wholly owned subsidiary
Prysmian, the Italian cable manufacturer, completed its acquisition of US electrical infrastructure supplier Atkore on 19 October. The buyer acquired all outstanding shares for 95 dollars each in cash. The transaction’s implied enterprise value was approximately 3.8 billion dollars, equivalent to 3.3 billion euros in the company’s completion announcement.[1], [2]
The merger agreement had been signed on 2 August. Completion now brings the ownership transfer into effect, and Atkore shares have ceased trading on the New York Stock Exchange. Prysmian will begin full consolidation of Atkore in November. The cash payment per share and the enterprise value describe distinct measures of the transaction.[1]
Electrical infrastructure products join the cable business
Atkore supplies electrical conduit, cable management systems and metal framing products. Those operations join Prysmian’s cable business, broadening the group’s product offering for data centres, electricity utilities, commercial buildings and industrial facilities. The acquisition combines different parts of electrical infrastructure supply within the same company rather than adding only another cable manufacturing operation.[1]
The combined US network includes more than 60 manufacturing and distribution sites. That footprint covers the combined businesses, rather than only the locations transferred with Atkore. Prysmian chief executive Massimo Battaini linked the transaction to the company’s strategy of expanding in electrical infrastructure solutions, with Atkore’s products complementing the group’s existing operations.[1]
Integration targets extend over three years
Prysmian targets 150 million dollars in annual pretax synergies within three years of completion. These are expected benefits from combining the businesses, rather than savings already reported in operating results. The target accompanies the integration of Atkore into the group following the completed share purchase and the planned start of full financial consolidation.[1]
The company also projects high single-digit accretion to earnings per share in the first full year, before synergies. Once the full benefits are achieved, management anticipates a double-digit contribution. Those figures remain company estimates for the combined business’s future earnings, alongside the three-year synergy target, rather than completed financial results from Atkore’s ownership under Prysmian.[1]
