Atkore expanding in PVC conduit again, with $38.2 million acquisition

By Catherine Kavanaugh
Staff Reporter

Published: October 8, 2013 1:59 pm ET
Updated: October 8, 2013 2:01 pm ET

Related to this story

Topics Mergers & Acquisitions, Construction, Pipe/Profile/Tubing

Harvey, Ill.-based Atkore International Inc. is acquiring substantially all of the assets of Ridgeline Pipe Manufacturing for $38.19 million, according to a U.S. Securities Exchange Commission filing.

The PVC pipe extruder, which had filed for bankruptcy in 2011, is Atkore’s third acquisition in recent weeks and the fifth in two years. Ridgeline is owned by EP Lenders II LLC.

Last month, when Atkore took over the Heritage Group and Liberty Plastics for $89.5 million and $2.5 million, respectively, company officials made no secret of its plans to become the leader in the PVC conduit market.

Ridgeline makes electrical PVC conduit, fittings, elbows, and irrigation pressure and sewer/drain pipe products. The company’s location in Eugene, Ore., made it an attractive acquisition, according to Bill Waltz, president of Atkore’s Plastic Pipe & Conduit business unit.

“Ridgeline’s strong customer relationships, focus on service and market presence in the Northwest complement Atkore’s capabilities and enhances our ability to deliver comprehensive electrical raceway solutions nationwide,” Waltz said in a statement.

The “electrical raceway” is the mechanical infrastructure that deploys, isolates and protects electrical circuitry from curb to outlet, including support struts and fittings, enclosed conduit and trunking, and accessories like cable trays, ladders and baskets.

The total electrical raceway market is estimated at $75 billion and Atkore currently serves $6 billion of it, according to the company’s Oct. 1 investor presentation. The same presentation says when it comes to conduit products, Atkore holds the No. 1 position in steel and No. 2 in PVC.

Atkore makes galvanized steel tubes and pipes, electrical conduit, armored wire and cable, metal framing systems and building components for construction, electrical, fire and security, mechanical and automotive applications.

Atkore officials told investors that PVC conduit is a direct substitute for steel conduit and armored cable and it growing faster where it is permitted by code because of lower material and labor costs. The overall conduit market is expected to grow 4-8 percent in the next 5 years as the construction market continues to recover. Forty percent of conduit sold goes into commercial construction.

The Ridgeline facility in Eugene has the capability to operate around the clock. The plant employs nearly 100 full-time and temporary workers. Operations will continue at that site, according to Mike Stickel, CEO of Ridgeline.

“Atkore is a strong company with a commitment to being a leader in the PVC market. We’re pleased Ridgeline’s contributions will help Atkore achieve this strategic growth opportunity,” Stickel said in a statement.

The acquisition comes on the heels of Atkore taking over Heritage Group and Liberty Plastics to broaden its offerings with PVC conduit, fittings, elbows and plumbing pipes.

In addition, Atkore acquired RWI in October 2011 to expand its fence market share, particularly in barbed tape, and FlexhHead in February 2012 for its sprinkler products.

Atkore also is reducing steel in its commodity mix. Last week it sold a Brazil business that manufactures metal conduit to Panatlântica S.A. for almost $44.9 million, according to another SEC filing.

Ridgeline was launched in March 2008 by former PW Eagle Inc. officials. They did not want to move after J-M Manufacturing Co. acquired PW, forming JM Eagle and relocating the firm's Eugene operations to Los Angeles. Ridgeline started with 45 employees.

The Oregon company’s pipe sales reportedly doubled in 2010 and continued to grow, but the lowest profit margins seen in 30 years led to the March 2011 filing of a voluntary petition for Chapter 11 protection from creditors. At the time, Ridgeline said it had 50-99 creditors, assets of between $1 million and $10 million, and liabilities of between $1 million and $10 million.

Atkore officials expect to close on the Ridgeline acquisition in the first quarter of fiscal year 2014 and move forward with their strategic plan to get a greater share of the electrical distribution wallet.

Atkore has about 3,000 employees and 20 manufacturing and 16 distribution facilities worldwide.


Comments

Atkore expanding in PVC conduit again, with $38.2 million acquisition

By Catherine Kavanaugh
Staff Reporter

Published: October 8, 2013 1:59 pm ET
Updated: October 8, 2013 2:01 pm ET

Post Your Comments


Back to story


More stories

Image

Producers urge booming Brazilian housing market to use EPS

April 18, 2014 1:08 pm ET

Leaders in Brazil's plastics industry are asking lawmakers to mandate the use of expandable polystyrene (the raw material for expanded EPS) in new...    More

JM Eagle reopens shuttered Colorado plant with 8 PVC lines

April 18, 2014 1:02 pm ET

JM Eagle has reopened its Pueblo, Colo., plant with eight PVC pipe extrusion lines back in operation following an 18-month shutdown.    More

PolyQuest spins off FiberQuest unit

April 18, 2014 10:14 am ET

PolyQuest Inc. has spun off its FiberQuest unit — which distributes polyester staple fibers and cotton — as a separate company.    More

Spain's Cristian Lay Group buys two materials units of bankrupt LSB

April 17, 2014 11:11 am ET

Spanish industrial conglomerate Cristian Lay Group has purchased two of the bankrupt Spanish PET packaging group La Seda de Barcelona.    More

MGS buying N.Y. medical molding plant from Hospira

April 17, 2014 10:19 pm ET

MGS Manufacturing Group is purchasing the Buffalo, N.Y., injection molding facility and related product line of Hospira Inc., effective July 1. Terms ...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events