Have you ever wondered what happens when a company’s stock plummets, its CEO steps down unexpectedly, and an activist investor steps into the fray? That’s exactly the drama unfolding at Atkore, a major player in the electrical and infrastructure manufacturing space. Recently, Irenic Capital Management grabbed headlines by snapping up a 2.5% stake in the company and pushing for a potential sale. It’s a classic case of corporate chess, and I can’t help but feel intrigued by the high stakes at play. Let’s unpack this situation, explore why it matters, and figure out what’s next for Atkore.
The Activist Playbook: Irenic’s Bold Move
Irenic Capital isn’t your average investor. Founded by seasoned pros from Elliott Investment Management and Indaba Capital, this activist firm has a knack for spotting companies at a crossroads and nudging them toward transformative change. Their approach? Collaborative yet firm, often pushing for strategic overhauls like spinoffs or outright sales. When they announced their 2.5% stake in Atkore on September 30, it wasn’t just a casual investment—it was a signal that they see untapped potential or, at the very least, a need for drastic action.
Atkore, valued at roughly $2.09 billion with shares trading around $61.97, has been a powerhouse in manufacturing electrical conduits, cables, and infrastructure solutions. But the company’s recent performance has been a rollercoaster, and Irenic’s arrival feels like a wake-up call. So, what’s driving this push for a sale, and why now? Let’s dive into the details.
Atkore’s Rise and Fall: A Tale of Boom and Bust
Atkore’s story is one of incredible highs followed by some sobering lows. During the pandemic, the construction industry went into overdrive, and Atkore rode that wave like a pro. Demand for their electrical products—like conduits and cables critical for wiring—skyrocketed. From 2019 to 2022, their revenue doubled from $1.9 billion to $3.9 billion, and EBITDA soared from $300 million to a jaw-dropping $1.3 billion. Those are the kind of numbers that make investors sit up and take notice.
But here’s where things get messy. Atkore got a bit too aggressive with its pricing strategy during the boom, jacking up costs to capitalize on the frenzy. It worked—until it didn’t. High prices invited cheaper imports into a market that had long been shielded by freight costs and local preferences. Suddenly, Atkore’s once-stable position in an oligopolistic market—think big names like Hubbell and Eaton—was under threat. By 2025, revenue had slid to $2.9 billion, and EBITDA took a hit, dropping to $462 million.
Aggressive pricing can be a double-edged sword—great for short-term gains but risky when competitors seize the opportunity.
– Industry analyst
It’s not just the numbers that tell the story. Atkore’s stock, which once soared to $190 per share in early 2024, has crashed to around $60. That’s a brutal drop, and it’s left shareholders frustrated. To top it off, the company’s headcount ballooned by over 40%, and SG&A (selling, general, and administrative) expenses climbed despite the revenue decline. In my opinion, that’s a red flag that screams operational inefficiency. And then, in late August, CEO Bill Waltz announced his retirement—without a successor in place. Talk about timing!
Why Irenic Thinks a Sale Makes Sense
Irenic’s push for a sale isn’t just about stirring the pot—it’s rooted in a clear-eyed assessment of Atkore’s challenges. Right now, the company is at a critical inflection point. With no permanent CEO, declining financials, and a board that’s made some questionable strategic calls, Atkore is vulnerable. Irenic sees an opportunity to unlock value, and they’re not alone in thinking a sale could be the best path forward.
Here’s why a sale might be appealing:
- Valuation upside: Atkore trades at about 6.5x EBITDA, but a private equity buyer could see value in the 8-10x range, especially with cost-cutting potential.
- Operational fixes: A new owner could streamline operations, trim bloated SG&A costs, and refocus on the core electrical business.
- Market dynamics: Recent shifts, like lower pricing and potential tariffs, could deter imports, making Atkore’s core business more attractive.
Private equity firms love companies like Atkore—ones with strong fundamentals but operational hiccups that can be fixed. A sale could fetch a premium, especially if the board plays its cards right. But here’s the catch: a sale isn’t the only option, and Irenic knows it. They’re likely pushing for a strategic review to weigh all possibilities, including staying independent.
The Standalone Path: Can Atkore Turn It Around?
If Atkore decides to go it alone, the road ahead won’t be easy—but it’s not impossible. The first order of business? Finding the right CEO. This isn’t just about filling a seat; it’s about hiring someone who can realign the company’s focus, cut costs, and restore investor confidence. In my experience, leadership transitions like this can make or break a company, and Atkore’s board needs to get it right.
Here’s what a standalone plan might look like:
- Hire a visionary CEO: Someone with deep experience in the electrical industry, not water infrastructure, to steer the ship back to its core strengths.
- Cut costs aggressively: There’s at least $100 million in SG&A ripe for trimming, which could boost margins significantly.
- Divest non-core assets: Sell off ventures like water infrastructure and fiber conduit that have diluted focus.
- Restore pricing discipline: With import pressures easing, Atkore can stabilize pricing to regain market share.
These steps sound straightforward, but executing them is another story. The board’s track record raises some doubts—after all, their focus on non-core ventures like water infrastructure contributed to the current mess. I can’t help but wonder if the current board, with its water industry-heavy leadership, is equipped to make these calls. Irenic likely shares that concern, which is why they’re pushing for new directors with electrical industry expertise.
A company without a clear leader is like a ship without a captain—directionless and vulnerable to storms.
– Corporate governance expert
The Board’s Big Decision: Sell or Stay?
At its core, this is a story about choices. Atkore’s board faces a pivotal decision: sell the company to the highest bidder or double down on a standalone strategy. Both paths have risks and rewards, and Irenic’s presence ensures the board won’t make this call in a vacuum. Let’s break it down with a quick comparison:
| Option | Pros | Cons |
| Sale | Immediate shareholder value, streamlined operations under new ownership | Potential loss of independence, uncertainty for employees |
| Standalone | Retains control, opportunity to rebuild core business | Execution risks, longer timeline for value creation |
Irenic’s push for a sale makes sense when you consider Atkore’s current valuation. At 6.5x EBITDA, it’s arguably undervalued compared to peers. A private equity buyer could see room to optimize operations and sell at a higher multiple down the line. But staying independent could also work if the board nails the CEO hire and executes a disciplined turnaround. The question is: can they pull it off?
Irenic’s Track Record: What to Expect
Irenic isn’t new to this game. Founded in 2021, the firm has quickly built a reputation for strategic activism, focusing on companies that are struggling in the public markets. Their playbook typically involves pushing for spinoffs, sales, or operational fixes—often with a collaborative tone. In Atkore’s case, they’re not just throwing darts at a board; they’re likely engaging with management behind closed doors to shape the board’s composition and strategy.
The timing of their announcement—right before the director nomination window opened on October 2—suggests a calculated move. Irenic probably wants one or two new directors on the board, ideally independents with deep industry knowledge. These additions could ensure the board makes informed decisions about a sale versus a turnaround. As a shareholder, I’d feel more confident with Irenic at the table, holding the board accountable.
What’s Next for Atkore?
The next few months will be critical for Atkore. The board’s strategic review, already underway, is focused on selling non-core assets like the water conduit business. But Irenic’s involvement raises the stakes—shouldn’t they be considering a full sale too? Launching a review without a permanent CEO feels like putting the cart before the horse, and I’m not the only one scratching my head over that decision.
Here’s what I think we’ll see:
- Board negotiations: Irenic will push for new directors to influence the CEO search and strategic review.
- CEO search intensifies: The board will prioritize finding a leader with electrical industry chops.
- Strategic clarity: A decision on whether to sell or stay independent will likely emerge by mid-2026.
Whatever happens, Atkore’s story is a reminder that corporate turnarounds are never simple. It’s like trying to fix a leaky ship in the middle of a storm—doable, but only with the right crew. Irenic’s involvement could be the spark Atkore needs to either find its footing or sail into the hands of a new owner. For now, all eyes are on the board.
Final Thoughts: A High-Stakes Game
Atkore’s situation is a fascinating case study in corporate governance and shareholder activism. Irenic’s push for a sale isn’t just about cashing out—it’s about forcing the board to confront tough questions about the company’s future. Should they sell to unlock immediate value, or can they rebuild Atkore into the powerhouse it once was? As someone who’s followed activist campaigns for years, I’m betting this story will have more twists before it’s over.
What do you think—will Atkore find its groove as an independent player, or is a sale the smarter move? One thing’s for sure: with Irenic in the mix, the board can’t afford to sit still. Stay tuned, because this corporate chess match is just getting started.
