Advanced Drainage Systems Announces Acquisition of StormTrap Investments LLC From PSP Capital
Key Highlights
- ➤ADS (WMS) to acquire StormTrap for approximately $530 million
- ➤StormTrap generated approximately $165 million revenue and $40 million adjusted EBITDA
- ➤Transaction value equals approximately 10x adjusted EBITDA, including expected run-rate cost synergies
- ➤Deal expected accretive to adjusted EPS in first year; closing targeted for fourth quarter of calendar 2026
- ➤Acquisition funded with cash on hand and existing credit line capacity
Expert Statements
Scott Barbour, Chief Executive Officer and President of Advanced Drainage Systems
“This acquisition adds highly complementary stormwater storage products and solutions to ADS’ comprehensive portfolio, increasing exposure to a growing segment of the market”
Scott Barbour, Chief Executive Officer and President of Advanced Drainage Systems
“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.”
Scott Barbour, Chief Executive Officer and President of Advanced Drainage Systems
“The addition of StormTrap will also create opportunities to further improve execution on selling all of ADS’ complementary portfolio of products and solutions.”
Scott Barbour, Chief Executive Officer and President of Advanced Drainage Systems
“StormTrap’s well-established reputation and innovative approach to delivering new solutions fits naturally with ADS’ position as a leader in stormwater management.”
Scott Barbour, Chief Executive Officer and President of Advanced Drainage Systems
“Our disciplined capital allocation framework and strong balance sheet provide us the flexibility to act decisively when the right opportunity like StormTrap emerges.”
Nate Olds, Chief Executive Officer of StormTrap
“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”
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.”
Nate Olds, Chief Executive Officer of StormTrap
“We look forward to building on both companies’ strengths as we work together to protect communities and the environment for generations to come.”
Advanced Drainage Systems Announces Acquisition of StormTrap Investments LLC From PSP Capital
* Expands Addressable Market with Complementary Offerings in Stormwater Storage Solutions
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