Ever since Prysmian announced its acquisition of Atkore, the rep world has been buzzing with the simple question of “who will rep the line?”

The answer to that will determine the line card of many reps in the marketplace as Atkore had multiple representatives in many markets. And reps who do not have a tie to Prysmian or Atkore could also be impacted!

At the same time, all remember Prysmian’s rep “decision selection” process when they acquired Encore. The General Cable and Encore reps expected to make presentations to the new management with some “winning” on both sides. Instead, Prysmian and Encore management presumably “huddled,” made decisions, and acted upon it without conducting rep meetings / interviews. And the end result was that all of the Encore reps earned / received representation of the Prysmian lines.

Prysmian, Atkore, and the Coming Rep Realignment

The expectation today … perhaps Prysmian will do the same, especially given that they have mentioned the potential of combining conduit and wire for specific opportunities (most notably data centers.)

But could some reps that have the entire Atkore package prevail?

What about conflicts? Will two reps in a market, essentially, trade lines?

Will manufacturers of lines that compete with Atkore that are currently with a Prysmian / Encore rep start evaluating the market and go elsewhere?

Will other reps consider line expansion opportunities?

And while many are doing scenario planning and there are probably quiet discussions, there are a few things that we assume and/or know:

1. The Atkore management is presumably engaged in the process and is advocating for at least some of their reps. Those with only a few Atkore lines may be, in our opinion, “at risk” to either move to the Prysmian rep or to a better represented Atkore rep.
2. If Prysmian decides to do a “mass switch,” the announcement of their rep strategy may be 30 days after the closing. This is what it was after their completion of the Encore acquisition. With the antitrust period now expired, the next step is the deal closing. Definitely by the end of the year. Which means decisions potentially prior to NEMRA. Going through the NEMRA meeting with no decision would mean lots of frustrated / confused conversations.
3. There could be some rep acquisitions due to this.
4. And some reps, and manufacturers, who will be proactive and make changes in advance. These are reps who “see the writing on the wall,” have only a few Atkore lines, and who will seek alternatives now.

Brazil Brothers & Associates Starts Change

Brazil Brothers and Associates has started the process. The company has:

• Announced a relationship with Champion Fiberglass, effective September 12^th.
• Expanded its relationship with Wheatland Tube include Maryland, Washington D.C. and Northern Virginia and will add the Wheatland PVC Conduit & Metal-Framing product categories to their representation across their entire geography effective October 1. The existing rep, Meridian Electrical Sales, also represents Prysmian / Encore. While Wheatland could co-exist then, perhaps they believe Meridian will inherit Atkore? Perhaps they didn’t want to be with the owner of a competitor?
• According to multiple industry sources, there could be a pending announcement about a relationship with Robroy, presumably for PVC coated and stainless steel. Brazil is / did (depending upon when you read this) represent Atkore’s Calbond, Calbrite, and FRE Composites.

Considerations

• If you have segments of the Atkore offering, perhaps Brazil’s proactiveness provides an impetus, or a roadmap, to consider. Within the Atkore product offering, there are limited options and it will be a “race” to relationships.
• Decisions will not be easy as this is not solely a “conduit to conduit” comparison (regardless of material), as there are competitive issues with Legrand (Cablofil), nVent (WBT), ABB, and others, and then there are the issues of “can you obtain a replacement line / will some of those lines seek alternatives to their current network.)
  • In other words, Prysmian’s acquisition of Atkore can have a wide ranging effect on the electrical rep network. Whether it be change, consolidation, or lines recognizing that an overlap in some segments is preferable to a total change in representation.
  • And yes, I’ve had scenario planning discussions with some reps. Further, Chris Sokoll at DISC and I have each, individually, helped reps with market sizing for this product category and others.
• While reps and manufacturers will have realignment, and distributors have relationships with many of these reps, will change impact distributor relationships, preferences, and ultimately, business?