Advanced Drainage Systems to Acquire StormTrap for $530 Million

Advanced Drainage Systems Inc. entered into a definitive agreement to acquire StormTrap Investments LLC for approximately $530 million. When adjusted for expected tax benefits, the deal value is estimated at $450 million. The acquisition integrates StormTrap's stormwater storage solutions for large-volume and space-constrained applications into the existing water management portfolio of Advanced Drainage Systems.

StormTrap reported approximately $165 million in revenue and $40 million in adjusted EBITDA for the twelve months ending July 2026. Advanced Drainage Systems plans to finance the transaction using cash on hand and existing credit line capacity, with expectations that the move will be accretive to adjusted earnings per share within the first year.

The boards of directors for both companies have unanimously approved the transaction. The deal remains subject to customary closing conditions and regulatory approvals, with an expected closing date in the fourth quarter of 2026.