U.S. infrastructure spending for water and sewer pipes and service lines have had more attention recently, but 2021's infrastructure spending bill and this year's federal inflation reduction act includes billions of dollars to upgrade the electric grid and improve communications systems.
Those investments are fueling interest in companies that make wire and cable systems, connectors and other key parts, such as Atkore Inc., a conduit maker that has now made seven acquisitions in 2022 — on top of two acquisitions in 2021 — and in late October announced a $7.7 million expansion in South Carolina.
On Nov. 9, Harvey, Ill.-based Atkore announced it had purchased HDPE conduit maker Elite Polymer Solutions LLC for $91.6 million.
The company said in late 2021 that it would invest $1 billion on capital expenditures, acquisitions and stock buybacks over the next three years.
That has some Wall Street analysts taking a closer look at the company that has been traded on the New York Stock Exchange for five years.
"Demand for electrical systems and related safety systems is growing rapidly," the website Seeking Alpha noted. "Electricity is central to modern life, and economic growth and greater demand for power are increasing. Atkore is riding this demand trend to new highs, and their revenue and profit has been increasing at a rapid pace."
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