Electric component maker Atkore said on Thursday its board and management team are considering its options, including a sale or merger of the company, sending its shares down 15%.
In the same month, Atkore said it was working with Citigroup to evaluate strategic alternatives, to increase focus on its core electrical infrastructure portfolio.
“Atkore had been under pressure from activist Irenic Capital. This, along with CEO Bill Waltz’s plans to retire, seemed to present an opportune moment for the electrical product manufacturer to explore a sale, especially as the company was operating with a strong backdrop thanks to the data center boom,” said Kevin Ketcham, analyst at Mergermarket.
Atkore announced the appointment of Franklin Edmonds to its board as part of a cooperation agreement with Irenic Capital.
With the addition, the company’s board will form a review committee to oversee strategic alternatives to include assets outside of its core electrical infrastructure portfolio.
The electric component maker has been taking steps to cut costs, including a headcount reduction, as it grapples with higher input costs and resulting pressure on profit margins due to tariffs.
On Thursday, Harvey, Illinois-based Atkore posted an annual net loss of $15.2 million for fiscal 2025, compared with net income of $472.9 million in the previous fiscal year.
It expects annual adjusted net income per share for fiscal 2026 to be in the range of $5.05 to $5.55, compared with analyst estimates of $5.48, according to data compiled by LSEG.
On an adjusted basis, Atkore’s profit for the quarter ended September 30 was 69 cents per share, missing estimates of $1.26.
Quarterly revenue fell by 4.6% to $752 million from a year earlier, compared with estimates of about $734 million.
Atkore has a market capitalization of $2.24 billion, as per data compiled by LSEG. As of last close, its shares were down 20.3% so far this year.
Source: Reuters.com