Advanced Drainage Systems agrees to buy StormTrap for approximately $530 million
Advanced Drainage Systems agreed to acquire StormTrap Investments from PSP Capital for approximately $530 million, with a transaction value of approximately $450 million after expected tax benefits. StormTrap provides engineered systems for stormwater storage, and Advanced Drainage Systems plans to finance the purchase with available cash and borrowing capacity. The companies expect to complete the acquisition in Q4 2026, subject to customary conditions and regulatory clearance.
Why it matters
Advanced Drainage Systems says the purchase will add to adjusted EPS in its first year and broaden its stormwater-storage offering. The company also says StormTrap will create cross-selling opportunities in non-residential and infrastructure markets.
Key facts
- 1Advanced Drainage Systems agreed to acquire StormTrap Investments for approximately $530 million. investing.com
- 2The deal's value is approximately $450 million after accounting for the present value of expected tax benefits. investing.com
- 3StormTrap recorded approximately $165 million of revenue and approximately $40 million of adjusted EBITDA over the twelve months ending July 2026. investing.com
- 4Advanced Drainage Systems expects to fund the purchase using cash and capacity under its credit facilities. investing.com
- 5Both companies' boards approved the transaction, which remains subject to customary conditions and regulatory approvals. investing.com
- 6Advanced Drainage Systems expects the acquisition to add to adjusted earnings per share during its first year. rttnews.com
Summary written by AlphAI from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.