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26-year PE portfolio company Advanced Drainage Systems exits pipeline; sets terms for $261 million IPO

By: Renaissance Capital
Posted: 7/14/2014 8:59:00 AM
Referenced Stocks: WMS

Advanced Drainage Systems, the world's largest provider of high density plastic pipe used in construction, announced terms for its IPO on Monday. The Hilliard, OH-based company plans to raise $261 million by offering 14.5 million shares (64% insider) at a price range of $17 to $19. At the midpoint of the proposed range, Advanced Drainage would command a fully diluted market value of $1.3 billion.

Advanced Drainage Systems was held as a portfolio company of Berkshire Partners for 22 years, from 1988 until 2010, when American Securities purchased Berkshire's stake.

Advanced Drainage Systems, which was founded in 1966 and booked $1.1 billion in sales for the 12 months ended March 31, 2014, plans to list on the NYSE under the symbol WMS.  Barclays, Deutsche Bank, Citi and RBC Capital Markets are the joint bookrunners on the deal. It is expected to price during the week of July 21, 2014.