Prysmian nears $2.5 billion Atkore takeover as US expansion accelerates

Prysmian is in advanced talks to acquire US electrical maker Atkore in an all-cash deal that could be announced within days, extending its North American push where it generates 40 percent of revenue.

Chief Executive Officer Massimo Battaini said in May the company was scouting for a deal worth about €4 billion in enterprise value, according to a Bloomberg Television interview.

Atkore shares have risen about 15 percent in New York this year, giving the Harvey, Illinois-based company a market value of roughly $2.5 billion. Prysmian's stock is up more than a third this year, valuing the Milan-based cable maker at about €36.3 billion.

The acquisition would consolidate the electrical products and cable manufacturing sector, giving Prysmian deeper access to US construction, power, data center and telecommunications markets at a time when AI-driven demand is reshaping infrastructure investment. Final terms, including any premium to Atkore's undisturbed share price, have not been disclosed.

Atkore's Strategic Review Draws Activist Pressure

Atkore, which manufactures products and systems used to route and protect electrical wiring, said in November it was working with Citigroup and JPMorgan Chase to review strategic options, including a potential sale. The review came after Irenic Capital Management built a stake in the company and pushed for a sale, according to Bloomberg Law.

The company supplies electrical, safety and infrastructure products used in construction, power, data center and telecommunications projects worldwide. Its product portfolio — including conduit, cable management systems and metal framing — complements Prysmian's cable offerings across energy transmission, industrial and telecom applications. Atkore's US manufacturing base would also give Prysmian additional domestic production capacity, reducing reliance on imports at a time when supply chain resilience has become a priority for infrastructure buyers.

Three US Deals in Three Years

Prysmian has pursued a series of acquisitions to expand its US footprint. Two years ago, it purchased Encore Wire for almost €4 billion, its largest deal ever, followed by Channell Commercial Corp. about a year later for around €1 billion. The company, carved out of tiremaker Pirelli in 2005, is also planning a dual listing in the US, which Battaini called "a top priority" without providing a timetable.

Last month, Prysmian signed a long-term fiber-optic cable supply agreement with Molex worth up to €5.5 billion ($6.35 billion), as the company ramps up investments to capitalize on AI-driven demand from data centers. The Molex agreement, with Koch Inc.'s data center unit, shows the strategic shift toward digital infrastructure that the Atkore deal would reinforce.

Discussions are at an advanced stage but could still be delayed or falter, the people said. Prysmian declined to comment, while Atkore did not immediately respond to a request for comment outside regular business hours.

The deal would be the latest in a wave of consolidation in the electrical products sector, as manufacturers seek scale to serve the build-out of data centers, grid modernization and electrification projects across the US. Atkore's product lines serve as a direct complement to Prysmian's cable portfolio, and the combined company would have a broader offering for contractors and utilities. For Prysmian, the acquisition would deepen its exposure to the US construction cycle at a time when federal infrastructure spending and private data center investment are driving demand for electrical components.

The transaction would also mark a significant exit for Irenic Capital, which had pushed Atkore to explore a sale since building its stake. If completed, the deal would follow a pattern of European industrial companies acquiring US electrical and infrastructure assets to gain scale in the world's largest construction market, where grid modernization and data center build-out are driving multi-year demand growth. The consolidation trend has been building for years, with European manufacturers seeking US exposure to hedge against slower growth in their home markets.

This article is for informational purposes only and does not constitute investment advice.