HILLIARD, Ohio, Oct 5 — Advanced Drainage Systems, Inc. (NYSE: WMS) (“ADS” or the “Company”), a leading provider of innovative water management solutions in the stormwater and onsite wastewater industries, today announced that it has entered into a definitive agreement to acquire StormTrap Investments LLC (“StormTrap”), an industry leader in large volume, space-constrained, highly engineered stormwater solutions for a purchase price of approximately $530 million, or approximately $450 million when adjusted for the present value of the expected tax benefits. The transaction is expected to be accretive to adjusted EPS in the first year and supports ADS’ core growth strategy by expanding its product portfolio into high-demand, high-growth categories, enhancing market opportunities, and further broadening its product offering to customers across the stormwater management landscape.
“This acquisition adds highly complementary stormwater storage products and solutions to ADS’ comprehensive portfolio, increasing exposure to a growing segment of the market,” said Scott Barbour, Chief Executive Officer and President of ADS. “ADS will use its proven integration expertise and go-to-market capabilities to gain footing in a segment of the market focused on large volume storage solutions. The addition of StormTrap will also create opportunities to further improve execution on selling all of ADS’ complementary portfolio of products and solutions. StormTrap’s well-established reputation and innovative approach to delivering new solutions fits naturally with ADS’ position as a leader in stormwater management. Our disciplined capital allocation framework and strong balance sheet provide us the flexibility to act decisively when the right opportunity like StormTrap emerges.”
“We are very excited to join ADS’ industry-leading water management platform, and the alignment between our company values and shared commitment to delivering innovative, best-in-class solutions for stormwater management,” said Nate Olds, Chief Executive Officer of StormTrap. “StormTrap was built to solve challenging stormwater storage applications, and with ADS’ sales platform, history of successful integrations, and national scale, we are confident we can bring those solutions to a far broader set of customers. We look forward to building on both companies’ strengths as we work together to protect communities and the environment for generations to come.”
Transaction Benefits
Expands Addressable Market with Complementary Offering in Stormwater Storage Solutions
- Broadens addressable market by adding exposure to large volume, deep, space-constrained stormwater storage projects, creating an opportunity for ADS to serve a larger segment of the stormwater storage market.
- Adds highly complementary and innovative solutions in stormwater storage and treatment that optimize storage capacity for developers.
Enhances Go-to-Market Capabilities with Spec-Driven Commercial Model
- Leverages spec-driven and high-touch sales process supported by deep, local relationships with key existing and prospective customers.
- Provides access to a premier national precast partner network with strong concrete supplier relationships, creating a durable competitive advantage.
Provides Immediate Cross-Selling Opportunities in Non-Residential and Infrastructure Markets
- Opens channels to introduce ADS’ portfolio of water management solutions to a new customer audience.
- Increases participation across infrastructure and commercial development projects with unique site constraints.
Offers Significant Growth Opportunities Linked to Secular and Regulatory Tailwinds and Expanded Customer Relationships
- Benefits from federal, state, and local stormwater regulations expected to continue to drive demand for StormTrap’s complementary products.
- Expands StormTrap’s geographic reach through targeted commercial investments and access to ADS’ nationwide footprint.
