Atkore Set for $3.8B Prysmian Deal as Data-Center Push Takes Shape

Key Points

• Prysmian plans to acquire Atkore for $3.8 billion, or $95 per share plus debt, expanding beyond cables into conduits, fittings, cable trays and other electrical installation components.
• Prysmian is targeting $150 million in annual synergies by 2029, primarily from commercial cross-selling and operational efficiencies, with the deal expected to be accretive to earnings from the first year.
• The acquisition strengthens Prysmian’s position in the growing U.S. data-center and electrification markets by combining Atkore’s installation products with Prysmian’s cable portfolio; financing will use debt, equity and hybrid debt while aiming to preserve an investment-grade rating.

Prysmian said its planned acquisition of Atkore NYSE: ATKR would expand its U.S. electrification portfolio beyond cables into installation components, positioning the combined company as a one-stop supplier for distributors, engineering firms and data-center customers.

Speaking on a conference call, Prysmian CEO Massimo Battaini said the transaction builds on the company’s 2024 acquisition of Encore Wire and is intended to strengthen its presence in the U.S. electrification market. Atkore’s portfolio includes steel conduits, pipes, electrical fittings, metal framing, cable trays and wire baskets used to install and manage cables in residential, non-residential, industrial and data-center applications.

“When you sell the cables plus components, you enhance your chances to win the bid,” Battaini said. “You become stronger, you sell more than individually because it is actually a package.”

Transaction Value and Synergy Targets

Prysmian put the enterprise value of the acquisition at $3.8 billion, or $95 per share plus debt. Based on Atkore’s 2025 results, the company said the transaction implies a 9.8-times EBITDA multiple, declining to 7.1 times after expected synergies.

Atkore generated $2.8 billion in revenue in 2025, with EBITDA of $306 million and an EBITDA margin of 14%, according to Prysmian. The company operates 30 factories and has international operations accounting for roughly 15% to 16% of revenue, including locations in Canada, Australia and New Zealand, the United Kingdom, Europe and South America.

Prysmian is targeting $150 million in annual synergies by the end of 2029. Management said approximately $100 million of that target would come from commercial opportunities, while about $50 million would be derived from operational efficiencies, including procurement, organizational changes and manufacturing optimization.

• $100 million: Commercial synergies from bundling cables and installation products, expanding customer relationships and leveraging shared sales channels.
• $50 million: Operational synergies, including procurement, organizational efficiencies and selected manufacturing consolidation.
• Timing: Management expects synergies to be distributed broadly across 2027 through 2029.

Battaini said Prysmian expects the transaction to be accretive to earnings per share in the high-single digits from the first year, excluding synergies, and in the double digits once the synergy program reaches its run rate.

Data-Center and Market Opportunity

Atkore derives an estimated 10% to 15% of its revenue from data centers, according to Battaini. He said Prysmian sees an opportunity to increase Atkore’s participation in that market by combining Atkore’s installation-component offerings with Prysmian’s cable products, including armored cables used in more sophisticated data-center applications.

Prysmian said Atkore has not captured data-center growth to the same extent as Encore, but management believes the combined portfolio can increase the group’s share of customer spending. Battaini said customers increasingly value the ability to procure cables and the associated installation products from a single supplier.

Management also said Atkore has sufficient capacity to support additional volume without immediate new factory investment, based on Prysmian’s due diligence. Atkore’s annual capital expenditures have been in the range of $80 million to $90 million, Prysmian said.

On profitability, Battaini said Atkore’s current 14% EBITDA margin is below the company’s 17% to 18% margin before the 2021-2022 market spike. He said Prysmian believes there is potential to restore performance through improved efficiency, cost discipline, growth drivers in electrification and planned synergies.

Financing and Integration

Prysmian CFO Pier Francesco Facchini said the acquisition would be financed through a mix of approximately 60% debt, around 20% equity and roughly 20% hybrid debt. The equity component could involve treasury shares, newly issued shares, or both. Facchini said Prysmian had not yet decided which approach it would prioritize.

The company expects the blended cost of debt, including hybrid and non-hybrid financing, to be below 4%. Facchini said the financing structure was designed to preserve Prysmian’s investment-grade rating. Prysmian expects pro forma net debt to EBITDA of 1.4 times at the end of 2026, with leverage falling to around one time in 2027.

Management said Atkore will remain a standalone asset while being fully embedded within Prysmian’s electrification segment in the U.S. and other applicable regions. Prysmian expects integration costs of approximately $45 million to $50 million over three years.

The company also said it evaluated a pending U.S. Department of Justice litigation involving Atkore during due diligence and incorporated potential impacts into its purchase price assessment.

Looking ahead, Battaini said the transaction advances Prysmian’s strategy of increasing revenue from “solution provider” offerings, in which cables are sold alongside complementary components. Prysmian had previously targeted 55% of revenue from solutions by 2028; following the Atkore acquisition, Battaini said that share should rise above 60%.

About Atkore (NYSE:ATKR)

Atkore International Group Inc NYSE: ATKR is a diversified global manufacturer of electrical raceway and mechanical products, serving a broad range of end markets including commercial construction, industrial facilities and energy infrastructure. The company's electrical product portfolio encompasses conduit, tubing, fittings, connectors and cable management systems designed for use in residential, commercial and industrial wiring applications. On the mechanical side, Atkore offers pipe support solutions, seismic bracing, HVAC hangers and other mechanical products that address critical building and process piping needs.

Founded as a family-owned business before its reorganization into a standalone public company in 2016, Atkore has grown through both organic investment and targeted acquisitions.

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