Prysmian strikes $3.8 billion deal to buy Atkore in US electrical push

By Valentina Za and Claudia Cristoferi

MILAN, Aug 3 (Reuters) - Italy's Prysmian, the world's largest cablemaker, has agreed to acquire U.S. electrical products maker Atkore in a $3.8 billion deal as it bets on electrification and AI-driven infrastructure demand.

Prysmian has been expanding its North American footprint, starting with the 2024 takeover of Texas-based copper wire manufacturer Encore Wire Corp for $4.79 billion, followed in 2025 by the $1.15 billion acquisition of Channell Commercial, a Californian designer and manufacturer of telecommunications enclosures and connectivity products.

Just weeks ago, it added a long-term agreement worth up to €5.5 billion with U.S. electronics company Molex, part of Koch group, to supply fibre optic cables for data centres.

North America currently accounts for 40% of Prysmian's revenue.

"Atkore fits well with our strategy to become more relevant in the United States, where we will become more sizeable and complete," Prysmian Chief Executive Officer Massimo Battaini told analysts on a call. 

Prysmian, which secured Atkore following a competitive process, will look for similar acquisitions in other geographies and was already evaluating further M&A opportunities, he added.

The Milanese company offered $95 per Atkore share in cash, a 30% premium to Friday's closing price of $72.96 based on Reuters calculations.

PRYSMIAN SHARES FALL 

Prysmian Chief Financial Officer Pier Francesco Facchini said the acquisition would be funded with about 20% equity,  including the possible sale of treasury shares, more than 20% through hybrid instruments, and the remaining 60% through debt financing. 

Prysmian shares opened 3% higher before reversing course to trade 3% lower by 0950 GMT.

Atkore, which employs around 5,400 people globally, reported revenue of $2.85 billion for 2025 and earnings before interest, tax, depreciation and amortisation of $386 million.

It makes products including electrical conduit and cable management systems and supplies data centres, utilities including renewables, and transportation, such as railways. 

Battaini told analysts that as Prysmian and Atkore provided complementary products to the same customers, there would be a better chance of winning clients with a bundled offer. 

Prysmian expects the acquisition to yield around $150 million of pre-tax annual benefits within three years of closing, which is expected by December 31. 

It said the combined company would have reported about €22 billion in revenue for 2025 on a pro-forma basis, and €2.7 billion in adjusted core earnings.

($1 = 0.8672 euros)

(additional reporting by Elvira Pollina, Editing by Alvise Armellini, Kirsten Donovan)