Advanced Drainage Systems agrees to buy StormTrap for $530 million
The water management solutions provider expands its stormwater storage portfolio with the acquisition of StormTrap from PSP Capital.
Key takeaways
- Advanced Drainage Systems Inc. (WMS) agreed to acquire StormTrap Investments LLC for approximately $530 million, or about $450 million net of expected tax benefits. StormTrap generated $165 million in revenue and $40 million in adjusted EBITDA for the twelve months ending July 2026. The deal is expected to close in the fourth quarter of calendar 2026.
Advanced Drainage Systems Inc. said on Monday it agreed to acquire StormTrap Investments LLC for approximately $530 million, or about $450 million when adjusted for the present value of expected tax benefits.
Chief Executive Officer and President Scott Barbour said the transaction adds complementary stormwater storage products to the company's portfolio. The deal will be funded by cash on hand and existing credit line capacity.
StormTrap generated approximately $165 million in revenue and approximately $40 million in adjusted EBITDA for the trailing twelve months ending July 2026. The transaction value, net of estimated tax benefits, represents a multiple of approximately 10x adjusted EBITDA for the trailing twelve months, inclusive of expected run-rate cost synergies.
"This acquisition adds highly complementary stormwater storage products and solutions to ADS' comprehensive portfolio, increasing exposure to a growing segment of the market," Barbour said in a statement.
StormTrap Chief Executive Officer Nate Olds said the company looks forward to expanding its reach through the agreement.
"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," Olds said.
The transaction has been unanimously approved by the boards of directors of both companies. The deal is expected to close in the fourth quarter of calendar 2026, subject to customary closing conditions and required regulatory approvals.
Jefferies LLC acted as exclusive financial advisor and Squire Patton Boggs (U.S.) LLP acted as legal advisor to Advanced Drainage Systems. Raymond James acted as lead financial advisor, William Blair acted as co-advisor, and Mayer Brown LLP acted as legal advisor to StormTrap and PSP Capital.