Atkore International Group Inc (ATKR)

History and Background

Atkore International Group Inc. was founded in 1959 as part of Allied Tube & Conduit. It became an independent company in 2010 and went public in 2016. It has grown through acquisitions and organic expansion.

Core Business Areas

• Electrical Raceway: Manufactures electrical conduit, fittings, and related products used to protect and route electrical wiring. This includes EMT, IMC, rigid conduit, and PVC conduit.
• Mechanical Products & Solutions: Produces metal framing, cable management solutions, and other infrastructure products used in various construction and industrial applications.

Leadership and Structure

The CEO is Bill Waltz. The company operates with a functional organizational structure, divided into segments based on product lines and geographical regions. The board of directors oversees the management team.

Key Offerings

• Electrical Conduit: Steel and PVC electrical conduit and fittings. Atkore is a leading producer of electrical conduit in North America. Competitors include Southwire, Wheatland Tube, and Allied Tube & Conduit. Market share in Electrical Conduit is estimated at 20-25%.
• Metal Framing: Unistrut metal framing systems and related accessories. Used in construction and industrial applications for support and mounting. Competitors include Hilti, Cooper B-Line, and Thomas & Betts. Market share in Metal Framing is estimated at 15-20%.

Industry Overview

The industry is driven by construction spending, infrastructure development, and industrial production. It is cyclical and sensitive to economic conditions. Trends include demand for safer and more efficient electrical solutions.

Positioning

Atkore is a leading player in the electrical and mechanical products market in North America. It has a strong brand reputation and a diversified product portfolio. Key competitive advantages are its scale, distribution network, and manufacturing capabilities.

Total Addressable Market (TAM)

The estimated TAM is around $20 billion globally. Atkore's strong position in North America puts it in a solid position to capture a significant portion of this market.

Key Competitors

• SWK
• ABB
• PNR
• JCI

Competitive Landscape

Atkore has a strong competitive position due to its scale, distribution network, and product portfolio. It faces competition from larger diversified industrial companies as well as smaller niche players.

FRE Composites

• Year: 2022
• Acquisition Price (USD millions): 265
• Strategic Rationale: FRE Composites expands Atkore's product portfolio into fiberglass conduit, broadening its solutions for harsh environments and complementing its existing electrical raceway offerings.

Elite Polymer Solutions

• Year: 2021
• Acquisition Price (USD millions): 62
• Strategic Rationale: EPS expands Atkore's PVC conduit manufacturing capabilities and increases capacity in the North American market.

Historical Growth: Atkore has experienced significant growth in recent years, driven by acquisitions and organic expansion.

Future Projections: Analysts project continued growth for Atkore, albeit at a slower pace than in recent years. Growth is expected to be driven by infrastructure spending and new product development.

Recent Initiatives: Recent strategic initiatives include acquisitions of complementary businesses and investments in new manufacturing capacity.

Atkore is a strong company with a leading market position and a diversified product portfolio. Its financial performance has been strong in recent years. However, Atkore is exposed to cyclical economic conditions and raw material price fluctuations. The company should focus on managing costs and expanding into new markets to sustain growth.

Data Sources:

• Company Filings (10-K, 10-Q), Investor Presentations, Analyst Reports, Market Research Reports

Disclaimers:

This analysis is based on publicly available information and is for informational purposes only. It should not be considered investment advice. Market share information is estimated and may not be precise.