Advanced Drainage Systems acquires StormTrap for $530 million

• Advanced Drainage Systems acquired StormTrap for a total purchase price of approximately $530 million.
• The transaction expands the company's addressable market by adding large-volume stormwater storage products.
• The company expects the acquisition to be accretive to adjusted earnings per share in the first year.

Advanced Drainage Systems (NYSE:WMS) executed a definitive agreement to acquire StormTrap Investments for approximately $530 million.

The transaction value adjusts to approximately $450 million when accounting for the present value of expected tax benefits.

StormTrap generated approximately $165 million in revenue and $40 million in adjusted EBITDA over the trailing twelve months ending July 2026.

The acquisition expands the buyer's addressable market by adding exposure to large-volume, space-constrained stormwater storage projects.

Following the announcement, Advanced Drainage Systems' share price was up at $168.45.

The company expects the transaction to be accretive to adjusted earnings per share within the first year.

Advanced Drainage Systems will fund the acquisition using cash on hand and existing credit line capacity.