Advanced Drainage Systems To Acquire StormTrap For $530 Mln

D.A. Davidson reiterated a Buy rating and $190 price target for Advanced Drainage Systems (WMS) after its $450M acquisition of StormTrap. WMS stock is near its 52-week low at $130.66. The firm views the deal as a fair bolt-on acquisition, initially margin-dilutive but expected to align with legacy margins over time. WMS reported Q1 FY2027 earnings of $2.49 per share, beating estimates, with revenue exceeding $1B for the first time.

Advanced Drainage Systems (WMS) will acquire StormTrap Investments from PSP Capital for approximately $530M, with a net transaction value of about $450M after tax benefits. The deal aims to expand WMS's stormwater management offerings to include large-volume storage solutions, according to the company.

Advanced Drainage Systems (ADS) agreed to acquire StormTrap for ~$530M ($450M net) to expand its stormwater solutions portfolio. The deal, funded by cash and credit, is subject to customary closing conditions. According to ADS, it will enhance their capabilities in engineered stormwater solutions.

Advanced Drainage Systems (NYSE:WMS) will acquire StormTrap for $530M ($450M net). StormTrap, with $165M revenue and $40M EBITDA, offers stormwater storage solutions. The deal, expected to close Q4 2026, will be funded by cash and credit. WMS anticipates earnings per share growth from the acquisition.

Advanced Drainage Systems (WMS) agreed to acquire StormTrap for about $530M, expecting EPS accretion in the first year. The deal, subject to approvals, is set to close in Q4 2026. ADS aims to expand its stormwater storage business, aligning with regulatory trends.

Advanced Drainage Systems (WMS) reported Q1 FY2027 net sales of $1.0B, up 20.6% year over year, and adjusted EBITDA of $358.3M, up 28.8%, with margin at 35.8%. Management reiterated FY2027 guidance of $3.35B to $3.55B revenue and $1.0B to $1.05B EBITDA, citing price/cost actions and pull-ahead demand.