Advanced Drainage Systems has entered into a definitive agreement to acquire StormTrap Investments from PSP Capital for approximately $530 million, expanding its stormwater management portfolio into large-volume, space-constrained storage systems.
The transaction value falls to approximately $450 million when adjusted for the present value of expected tax benefits.
StormTrap develops highly engineered stormwater storage and treatment solutions designed for projects where available space is constrained and substantial storage capacity is required.
Advanced Drainage Systems expects the acquisition to be accretive to adjusted earnings per share during the first year following completion.
StormTrap generated approximately $165 million in revenue and approximately $40 million in adjusted EBITDA during the 12 months ended July 2026.
Net of estimated tax benefits, the purchase price represents approximately 10 times StormTrap’s trailing 12-month adjusted EBITDA, including expected run-rate cost synergies.
Advanced Drainage Systems plans to use StormTrap to broaden its addressable market across large-volume and deep stormwater storage projects.
The company also sees opportunities to introduce its broader portfolio of water management products to StormTrap customers and expand participation in non-residential and infrastructure projects with complex site requirements.
StormTrap brings a spec-driven commercial model supported by local customer relationships and a national precast partner network with established concrete supplier relationships.
Advanced Drainage Systems plans to use its national sales platform to expand StormTrap’s geographic reach while benefiting from demand associated with federal, state and local stormwater regulations.
The transaction will be financed with cash on hand and capacity under Advanced Drainage Systems’ existing credit lines.
The boards of both companies unanimously approved the acquisition.
Closing is expected during the fourth quarter of 2026, subject to required regulatory approvals and other customary conditions.
Jefferies is serving as exclusive financial adviser to Advanced Drainage Systems, while Squire Patton Boggs is providing legal advice.
Raymond James is serving as lead financial adviser to StormTrap and PSP Capital, with William Blair acting as co-adviser and Mayer Brown providing legal advice.
KEY QUOTES:
“This acquisition adds highly complementary stormwater storage products and solutions to ADS’ comprehensive portfolio, increasing exposure to a growing segment of the market. ADS will use its proven integration expertise and go-to-market capabilities to gain footing in a segment of the market focused on large volume storage solutions. The addition of StormTrap will also create opportunities to further improve execution on selling all of ADS’ complementary portfolio of products and solutions. StormTrap’s well-established reputation and innovative approach to delivering new solutions fits naturally with ADS’ position as a leader in stormwater management. Our disciplined capital allocation framework and strong balance sheet provide us the flexibility to act decisively when the right opportunity like StormTrap emerges.”
Scott Barbour, Chief Executive Officer and President of Advanced Drainage Systems
“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. StormTrap was built to solve challenging stormwater storage applications, and with ADS’ sales platform, history of successful integrations, and national scale, we are confident we can bring those solutions to a far broader set of customers. We look forward to building on both companies’ strengths as we work together to protect communities and the environment for generations to come.”
Nate Olds, Chief Executive Officer of StormTrap
