Atkore International Group Inc. (NYSE: ATKR) expects to raise $252 million in its upcoming IPO. Based in Harvey, Illinois, Atkore manufactures electrical raceway products for non-residential construction and mechanical products solutions (MP&S) for the industrial and construction markets.

We previewed ATKR on our IPO Insights platform last week.

ATKR will offer 12.0 million shares at an expected price range of $20 to $22. ATKR filed for the IPO on March 4, 2016.

Lead Underwriters: Credit Suisse Securities and JP Morgan Securities

Underwriters: Citigroup Global Markets, RBC Capital Markets, UBS Investment Bank, and Wells Fargo Securities

Business Summary: Manufacturer of Electrical Raceway and Other Mechanical Products Solutions

As described in its SEC Filings, Atkore International manufactures and sells galvanized steel pipes and tubes, armored cables and wires, electrical conduits, metal framing systems-all components in electrical circuity. The company's portfolio includes pre-wired armored cables, barbed tapes, cable systems, electrical support systems, mechanical tubes, cable tray systems, metal framing systems, fittings, and structural pipes. Atkore has focused its sales on the electrical, construction, mechanical, fire and security, and automotive industries and has manufacturing and distribution facilities in China, Brazil, New Zealand, the United Kingdom, Australia, Saudi Arabia and France.

The company believes it holds the #1 of #2 positions in the United States by net sales in the majority of its products. From fiscal 2011 to the 12 months ended in March 2016, Atkore grew its adjusted net sales and net sales at a compound annual growth rate of 3.9% to $1.49 billion and 2.1% to $1.59 billion, respectively.

Use of Proceeds: Straight To Selling Stockholders

The selling stockholders will receive all of the net proceeds of the IPO, and Atkore will not receive any monetary proceeds, including the sale of any shares if the underwriters exercise their option to purchase more shares.

Executive Management Highlights

President and CEO John Williamson joined Atkore International in June 2011. Previously, he held senior positions at ITT Corporation, Danaher Corporation, Fluke Corporation, Jennings Technology, Veeder-Root Company, Dynapar, Disc Instruments, and Connector Technology. Mr. Williamson earned a B.A. in Business Administration from California State University Fullerton and holds a Certificate in Strategic Marketing Management from Harvard Business School.

CFO James Mallek joined Atkore International in March 2012. His previous experience includes executive positions at Alvarez & Marsal, Tower Automotive, Textron Inc., and ITT Automotive. Mr. Mallak earned a Masters of Business Administration from the Eli Broad College of Business at Michigan State University and a Bachelors of Arts degree in accounting from Michigan State University.

Potential Competition: Eaton Corporation, Pentair PLC and Hubbell Incorporated

As describe in its Prospectus Summary, Atkore International faces competition from national manufacturers, smaller regional manufacturers and international competitors from Mexico, Canada and other international markets. These companies include Electrical Raceway, Eaton Corporation, ABB Ltd., Pentair PLC, Hubbell Incorporated, Haydon Corporation, Thomas & Betts, Wheatland Tube, Mechanical Tube, and Western Tube & Conduit.

Financial Highlights: Solid Sales, Swing To Profitability

Atkore provided the following figures from its financial documents for the twelve months ending in March:

As of March 25, 2016:

Conclusion: Consider A Modest Allocation

ATKR is a departure from a flood of healthcare deals recently; this relatively unique business, along with an impressive underwriting team, could help the deal to success (not to mention even stronger and more consistent profits down the line). We suggest a modest allocation in the IPO at present and suggest investors stay tuned for updates.

Stated risks do include reliance on non-residential construction industry, which has been slow to recover; and price increases in raw materials.