Advanced Drainage Systems To Acquire StormTrap For $530 Mln
(RTTNews) - Advanced Drainage Systems, Inc. (WMS), a provider of water management solutions, said Monday it has agreed to acquire StormTrap Investments LLC, a provider of engineered stormwater storage solutions, from From PSP Capital for about $530 million.
The transaction value is approximately $450 million when adjusted for the present value of expected tax benefits. ADS said it will fund the acquisition with cash on hand and existing credit line capacity.
StormTrap generated approximately $165 million in revenue and $40 million in adjusted EBITDA for the 12 months ended July 2026. The transaction represents a multiple of about 10 times adjusted EBITDA, including expected run-rate cost synergies, after estimated tax benefits. ADS expects the transaction to be accretive to adjusted EPS in the first year. The company said the deal will expand its stormwater storage offering, particularly in large-volume and space-constrained projects, while creating cross-selling opportunities in non-residential and infrastructure markets.
The acquisition will also expand ADS' geographic reach and customer base, with stormwater regulations at the federal, state and local levels expected to support demand for StormTrap's products.
"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," said Scott Barbour, Chief Executive Officer and President of ADS.
On the NYSE, ADS shares closed at $127.27 on Friday, up 0.32%.
