Business description of Atkore-Inc from last 10-k form
PART I
Item 1. Business
The following discussion of our business contains "forward-looking statements," as discussed in Part II, Item 7, ''Management's Discussion and Analysis of Financial Condition and Results of Operations'' below. Our business, operations and financial condition are subject to various risks as set forth in Part I, Item 1A, ''Risk Factors'' below. The following information should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations, the Financial Statements and Supplementary Data and related notes and the Risk Factors included elsewhere in this Annual Report on Form 10-K.
Company Overview
Atkore International Group Inc. (collectively with all its subsidiaries referred to in this Annual Report on Form 10-K as "Atkore," the "Company," "we," "us" and "our") was incorporated in the State of Delaware in November 2010. Atkore is the sole stockholder of Atkore International Holdings Inc. ("AIH"), which in turn is the sole stockholder of Atkore International, Inc. ("AII").
We are a leading manufacturer of Electrical Raceway products primarily for the non-residential construction and renovation markets and Mechanical Products and Solutions ("MP&S") for the construction and industrial markets. Electrical Raceway products form the critical infrastructure that enables the deployment, isolation and protection of a structure’s electrical circuitry from the original power source to the final outlet. MP&S frame, support and secure component parts in a broad range of structures, equipment and systems in electrical, industrial and construction applications. We believe we hold #1 or #2 positions in the United States by net sales in the vast majority of our products. The quality of our products, the strength of our brands and our scale and national presence provide what we believe to be a unique set of competitive advantages that position us for profitable growth.
On June 9, 2016, the Company’s Registration Statement on Form S-1 relating to an initial public offering ("IPO") of our common stock was declared effective by the SEC and on June 15, 2016, we completed the IPO at a price to the public of $16.00 per share. In connection with the IPO, CD&R Allied Holdings, L.P. (the "CD&R Investor"), an affiliate of Clayton, Dubilier & Rice, LLC ("CD&R") sold an aggregate of 12,000,000 shares of our common stock. The CD&R Investor received all of the net proceeds and bore all commissions and discounts from the sale of our common stock. We did not receive any proceeds from the IPO.
Our products
Our principal Electrical Raceway products include electrical conduit and fittings, armored cable and fittings, cable trays and mounting systems and fittings, which are critical components of the electrical infrastructure for new construction and maintenance, repair and remodel ("MR&R") markets. Our MP&S principal products are metal framing and in-line galvanized mechanical tube. Our metal framing products are used in the installation of electrical systems and various support structures. In total, we operate 27 manufacturing facilities and 25 distribution facilities that enable us to efficiently receive materials from our suppliers and deliver products to our customers. In fiscal 2016, 92% of our net sales were to customers located in the United States. Our global footprint has been streamlined in recent years to improve manufacturing capacity utilization across our facilities and to enhance the efficiency of our transportation and logistics networks.
Product Category
Sample Products
Brands
Sample Product Images
Electrical Raceway
Metal Electrical Conduit and Fittings
Metal Conduit:
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Electrical Metallic Tubing (EMT)
Intermediate Metal Conduit (IMC)
Galvanized Rigid Conduit (GRC)
Metal Conduit Fittings:
Elbows
Couplings
Nipples
Conduit Bodies
PVC Electrical Conduit & Fittings
PVC Conduit:
Rigid Non-Metallic Conduit (RNC)
PVC Conduit Fittings:
Duct spacers
Flexible Electrical Conduit and Fittings
Flexible Electrical Conduit:
Flexible Metallic Conduit (FMC)
Liquidtight Flexible Metal Conduit (LFMC)
Liquidtight Flexible Non-Metallic Conduit (LNFC)
Flexible Metallic Tubing (FMT)
Flexible Electrical Conduit Fittings:
Cord Connectors
Angle Connectors
Armored Cable and Fittings
Armored Cable:
Metal Clad Cable (MC)
Armor Clad Cable (AC)
Healthcare Facility Cable (HFC)
Armored Cable Fittings:
Connectors
Service Entry Fittings
Cable Tray & Cable Ladders
Ladder Cable Tray
Hat Cable Tray
Channel Cable Tray
I Beam Cable Tray
Wire Basket Cable Tray
MP&S
Metal Framing & Fittings
Channel
Channel Fittings
Pipe Clamps/Hangers
Concrete Inserts
Construction Services
Design, Fabrication and Installation Services
Modular support structures
Fall protection
Mechanical Pipe
In-line galvanized mechanical tube
Non-galvanized tube
Fabrication services
Flexible Sprinkler Drops
Commercial
Industrial/Duct
Cleanroom
Institutional
Cold Storage
Barbed Tape
Security Confinement
Power Station
Military/Border
Law Enforcement
Marketing
Our products are primarily marketed by commissioned agents and sold directly to electrical and industrial distributors who resell our products under recognized brand names, including Allied Tube & Conduit, AFC Cable Systems, Heritage Plastics, Unistrut, Power-Strut and Cope, as well as certain other sub-brands that are used regionally or in niche markets. Our commissioned agents are selected, trained and managed by our regional sales teams and supported by product managers who ensure that agents are adequately knowledgeable and sufficiently trained to represent our brands to our distribution customers. We stimulate end-user demand by promoting our products and solutions directly to architects, electrical engineers, electrical contractors and electrical code authorities across the United States. We also work directly with electrical contractors, who install Electrical Raceway products on new construction or renovation projects to assist them in selecting the most effective electrical raceway solution. In certain of the markets we serve, we market directly to electrical and industrial distributors, original equipment manufacturers ("OEMs") and governmental entities.
Distribution
We primarily sell and distribute our products through electrical, industrial and specialty distributors and OEMs. For many of the over 13,000 electrical-distributor branches in the United States, our products are must-stock lines that form a staple of their business. We serve a diverse group of end markets, including new construction, MR&R and infrastructure, diversified industrials, alternative power generation, healthcare, data centers and government. End-users, which are typically electrical, industrial and mechanical contractors as well as OEMs, install our products during non-residential, residential and infrastructure construction and renovation projects or in assembly and manufacturing processes.
Distribution-based sales accounted for approximately 83% of both our net sales and Adjusted net sales, respectively, for fiscal 2016. We distribute our products to electrical and industrial distributors from our manufacturing facilities as well as from over 50 dedicated distribution facilities owned by our agents. Our products are also stocked by electrical and industrial distributors who are located in major cities and towns across the United States. Some of our products are purchased by OEMs and used as part of their products and solutions in applications such as utility solar framing, conveyor systems and fabric cover buildings. OEM sales accounted for approximately 17% of both of our net sales and Adjusted net sales for fiscal 2016.