Harvey, Ill.-based pipe maker Atkore Inc. has made two separate-but-related acquisitions in Oregon, with the purchases of Northwest Polymers in Mollala and Cascade Poly Pipe & Conduit in Woodburn.
Founded 20 years ago, Northwest Polymers turns recyclable post-industrial waste plastic into pellets for decking and fencing manufacturers and more recently for conduit to house fiber for broadband. The company, which recycles PVC, high density polyethylene and other plastics, is a supply partner to Cascade and other manufacturers in the region.
Launched two years ago, Cascade Poly extrudes smooth-wall HDPE conduit from recycled materials, primarily for the telecommunications, utility and datacom markets.
Cascade Poly uses about 1 million of the 4 million pounds of pellets per month produced by Northwest Polymers, former owner Mark Shuholm told the Salem Statesman Journal for an Aug. 20 story.
The acquisitions — Atkore's fifth and sixth deals of fiscal year 2022 — align with a strategy to deliver differentiated and sustainable solutions, according to officials at Atkore, which manufactures products for electrical, safety and infrastructure systems.
With $309 million in relevant annual sales, publicly traded Atkore was No. 16 in the 2021 Plastics News ranking of North American pipe, profile and tubing makers.
Atkore officials plan to retain all employees — 30 at Cascade and 80 at Northwest — and continue both operations at their current sites.
"The acquisition of Cascade strengthens Atkore's product portfolio, establishes a HDPE conduit manufacturing presence in the Pacific Northwest to better serve customers, and enables us to meet growing demands resulting from the expansion of 5G wireless networks and the U.S. infrastructure bill funding supporting broadband to rural and underserved communities," John Pregenzer, president of Atkore's electrical business, said in a news release.
The acquisition of Northwest Polymers also supports Atkore's environment, social and governance commitment to address sustainability throughout the supply chain, Pregenzer added.
Terms were not disclosed.
With the latest two deals, Atkore now has deployed more than $310 million to complete six acquisitions in fiscal year 2022.
"Atkore remains diligent in executing upon our capital allocation strategy to drive value creation for our shareholders through organic investments, M&A and stock repurchases," Atkore President and CEO Bill Waltz said.
The latest two deals follow Atkore's June acquisition of Springfield, Mo.-based United Poly Systems and its two plants in Missouri and New Mexico to serve the telecom, water infrastructure, renewables and energy markets.
With an estimated $80 million in sales, United Poly ranked No. 50 in Plastics News' ranking.
A month earlier, in May, Atkore bought Hammond, La.-based injection molder Talon Products LLC, which specializes in cable cleats for holding electrical cables in place.
Last year, Atkore purchased two companies in December: HDPE conduit maker Four Star Industries in Allendale, S.C., and a Canadian manufacturer of metal framing and related products called Sasco Tubes & Roll Forming Inc.
The acquisition streak puts Atkore ahead of schedule on its plan announced in November 2021 to spend more than $1 billion in the next two to three years to build a leading portfolio and expand in adjacent markets, Waltz said during a quarterly earnings call on Aug. 2.
For the third quarter, Atkore sales increased by $207.9 million, or 24.4 percent, to $1.06 billion for the three months ended June 24. That compares to $853.7 million for the three months ended June 25, 2021.
The sales increase is primarily attributed to increased selling prices across the company's product lines but $13.8 million was generated from companies acquired during fiscal 2021 and fiscal 2022.
Atkore officials also updated the company outlook. They expect net sales to increase about 32 percent compared to fiscal year 2021.