Advanced Drainage Systems to acquire StormTrap for $530 million

Advanced Drainage Systems (ADS) has agreed to acquire StormTrap Investments from PSP Partners for approximately $530 million. The transaction, which is expected to close in the fourth quarter of 2026 subject to regulatory approvals, aims to expand ADS’s presence in the stormwater storage market, specifically through StormTrap’s engineered solutions for large-volume, space-constrained projects.

After adjusting for the present value of expected tax benefits, the purchase price is approximately $450 million. ADS intends to fund the acquisition using cash and existing credit capacity. StormTrap reported approximately $165 million in revenue and $40 million in adjusted EBITDA during the 12 months ending July 2026. ADS expects the acquisition to increase its adjusted earnings per share within the first year.

Mayer Brown provided legal advisory services to PSP Partners during the sale. This acquisition follows ADS’s previous purchase of NDS in February.