Net assets divested included fixed assets, net of $7,055, cash of $4,293, goodwill of $1,506, working capital of $1,271, other liabilities of $910, right-of-use assets and lease liabilities of $239 and $240, respectively and other long-term assets of $7. For consideration, the Company received cash of $11,931 and a holdback receivable of $85, payable once certain conditions are met.

On April 7, 2026, the Company completed the sale of its High-Density Polyethylene (“HDPE”) pipe business. The transaction was structured as an asset sale. Consideration received consisted of a 9.9% equity interest in the combined entity, Infra Pipes U.S Corp (“Infra Pipes”), and the right to receive additional consideration of up to $28,000 if Infra Pipes achieves specified future performance targets.


(in thousands)	HDPE
Consideration received:
Fair value of 9.9% equity interest in Infra Pipes	$	54,000
Fair value of contingent consideration	9,400
	63,400

Net book value	45,897
Initial portion of cash funding commitment1	15,000
Deferred portion of cash funding 1,2	13,000
	73,897

Loss on sale of business	$	(10,497)

1. Certain aspects of total consideration received have yet to result in cash inflows and outflows and therefore reflect non-cash investing activities within the Company’s Consolidated Statement of Cash Flows for the nine months ended June 26, 2026.
2. The Company committed to fund Infra Pipe with a total of $28,000 of cash, $15,000 of which was due upon closing and $13,000 due within 90 days. The deferred portion remained unpaid as of June 26, 2026 and reported within Other current liabilities on the Condensed Consolidated Balance Sheets as of June 26, 2026 and will be paid in the fourth quarter of fiscal 2026. See Note 19, “Subsequent Events” for payment details

During the second quarter of 2026, the Company classified the HDPE business, which was previously included in the Electrical reportable segment, as held for sale. The HDPE business did not qualify as discontinued operations. As a result, the Company measured the assets and liabilities of the HDPE business disposal group at the lower of carrying value or fair value less costs to sell, resulting in a $6,500 goodwill impairment included in Asset impairments and a $25,664 loss included in Other expense (income), net in the Condensed Consolidated Statements of Operations for the nine months ended June 26, 2026.

Upon completion of the sale during the third quarter of 2026, the Company recorded an additional loss of $10,497 included in Other expense (income), net in the Condensed Consolidated Statements of Operations for the three and nine months ended June 26, 2026.

The 9.9% equity interest in Infra Pipes was initially recorded at estimated fair value using a discounted cash flow model and is accounted for under the equity method of accounting. See Note 4, “Equity Method Investment” for additional details.

The contingent consideration will be paid if certain financial targets are achieved by Infra Pipes and is recorded as a derivative asset at fair value within Other long-term assets on the Condensed Consolidated Balance Sheets as of June 26, 2026. The initial fair value of the derivative was estimated using a correlated Monte Carlo simulation within an option pricing framework and there was no change in its estimated fair value from initial recognition through quarter end. Accordingly, no gain or loss was recognized during the three and nine months ended June 26, 2026 related to the derivative. See Note 15, “Fair Value Measurements” for details.

The discounted cash flow model and the Monte Carlo simulation used to estimate the fair value of the 9.9% equity interest in Infra Pipes and the contingent consideration include significant unobservable inputs and are therefore classified as Level 3 fair value measurements.

Net assets divested included working capital of $14,727, fixed assets, net of $8,545, and right-of-use assets and lease liabilities of $387 and $386, respectively. Working capital primarily included accounts receivables, net of $3,971, and inventory, net of $10,227. For consideration, the Company received cash of $18,388 and a note receivable of $7,300 payable in April 2026.

During the third quarter of fiscal 2026, the Company finalized the post-closing net working capital adjustment related to the sale of Tectron Tube. The settlement resulted in a decrease to consideration received of $953, which was recognized as an adjustment to the gain on sale of business during the quarter. In addition, the Company received payment on the note receivable during the third quarter.

In fiscal 2023, the Company initiated plans to exit operations in Russia and that asset disposal group was recognized as assets held for sale. The Company recognized losses on those assets in fiscal 2023 as the Company did not expect to recover the value of its investment. The Company completed its exit in the first quarter of fiscal 2026 and recognized a loss on sale of business of $140.

Net assets divested included intangibles, net of $7,692, fixed assets, net of $2,063, working capital of $1,900, right of use assets and liabilities of $3,521 and $3,120 respectively, and allocated goodwill of $756. As part of the sale, the Company recognized additional tax expense of $3,946, which includes disallowed loss on the transaction of $1,101 and the write off of related deferred tax assets of $2,845.