Advanced Drainage Systems to Acquire StormTrap for $530 Million
The Hilliard manufacturer expands its underground stormwater portfolio through an agreement funded with cash and credit facilities.
Hilliard-based Advanced Drainage Systems, Inc. announced on Monday, Oct. 5, that it has reached an agreement to acquire Romeoville, Illinois-based StormTrap Investments LLC for approximately $530 million, or $450 million net of the present value of expected tax benefits.
Advanced Drainage Systems and its operating subsidiary ADS Investment LLC entered into a definitive Securities Purchase Agreement with seller representative StormTrap Investors, L.L.C. on Thursday, Oct. 1, 2026. The transaction involves buying StormTrap Investments LLC from Chicago-based private investment firm PSP Capital, an affiliate of PSP Partners founded by former U.S. Commerce Secretary Penny Pritzker.
Expanding Underground Stormwater Capacity
StormTrap designs and engineers proprietary systems for stormwater detention, retention, infiltration, treatment and harvesting, focusing on deep, large-volume installations on space-constrained sites. Its portfolio includes modular precast concrete designs sold under product lines such as SingleTrap, DoubleTrap and ShallowTrap.
The acquisition extends ADS’s water management footprint beyond plastic pipe, retention chambers and onsite wastewater products into deep structural precast detention. ADS leadership noted that the combination provides immediate commercial cross-selling opportunities across non-residential and infrastructure construction markets, supported by a premier national precast partner network with strong concrete supplier relationships.
ADS operates its global corporate headquarters and primary engineering research campus in Hilliard, where the company conducts research and development on material science and drainage technologies.
“This acquisition adds highly complementary stormwater storage products and solutions to ADS’ comprehensive portfolio, increasing exposure to a growing segment of the market,” ADS President and Chief Executive Officer Scott Barbour said in a statement. He added that ADS plans to deploy its integration capabilities and commercial scale to expand StormTrap’s presence in large-volume underground storage.
Nate Olds, chief executive officer of StormTrap, said joining ADS provides the distribution reach needed to scale StormTrap's systems nationwide. “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,” Olds said.
Financial Terms and Synergies
For the 12-month period ending July 2026, StormTrap generated approximately $165 million in revenue and approximately $40 million in adjusted EBITDA.
ADS disclosed that the adjusted purchase price of $450 million represents a valuation multiple of approximately 10 times StormTrap's trailing 12-month adjusted EBITDA, inclusive of expected run-rate cost synergies. The company expects the acquisition to be accretive to adjusted earnings per share in its first full year.
ADS will fund the purchase using a combination of cash on hand and borrowings under its existing credit facility. To manage transaction risk, ADS obtained a representations and warranties insurance policy providing recourse in the event of seller contractual breaches, subject to policy limits and retention thresholds.
Regulatory Timeline and Advisory Teams
The boards of directors of both companies unanimously approved the purchase agreement. The acquisition is scheduled to close in the fourth quarter of calendar 2026, subject to customary closing conditions.
Those conditions include compliance with contractual covenants requiring the parties to obtain required antitrust regulatory clearances.
Jefferies LLC is serving as exclusive financial advisor to ADS, with Squire Patton Boggs (U.S.) LLP acting as legal counsel. Raymond James is lead financial advisor and William Blair is co-advisor to StormTrap and PSP Capital, with Mayer Brown LLP providing legal counsel to the selling entities.
How we know this
The sources and records behind this story, with the facts they support.
Supporting evidence (3)
Advanced Drainage Systems and its operating subsidiary ADS Investment LLC entered into a definitive Securities Purchase Agreement with seller representative StormTrap Investors, L.L.C. on Thursday, Oct. 1, 2026.
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entered into a Securities Purchase Agreement (the “Purchase Agreement”) with StormTrap Investors, L.L.C., a Delaware limited liability company, as representative of the sellers
To manage transaction risk, ADS obtained a representations and warranties insurance policy providing recourse in the event of seller contractual breaches, subject to policy limits and retention thresholds.
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The Company has obtained a representations and warranties insurance policy that will provide a source of recourse in the event of any breaches of the representations and warranties of the Sellers contained in the Purchase Agreement, subject to a retention amount, exclusions, policy limits and certain other terms and conditions.
Those conditions include compliance with contractual covenants requiring the parties to obtain required antitrust regulatory clearances.
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The closing of the transaction remains subject to customary closing conditions, including customary covenants regarding the parties’ efforts to obtain required antitrust approvals.
Supporting evidence (7)
The transaction involves buying StormTrap Investments LLC from Chicago-based private investment firm PSP Capital, an affiliate of PSP Partners founded by former U.S.
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PSP Partners is a Chicago-based private investment firm founded by its Chairman Penny Pritzker, an entrepreneur, civic leader, and philanthropist, and former U.S. Secretary of Commerce.
StormTrap designs and engineers proprietary systems for stormwater detention, retention, infiltration, treatment and harvesting, focusing on deep, large-volume installations on space-constrained sites.
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an industry leader in large volume, space-constrained, highly engineered stormwater solutions for a purchase price of approximately $530 million, or approximately $450 million when adjusted for the present value of the expected tax benefits.
ADS leadership noted that the combination provides immediate commercial cross-selling opportunities across non-residential and infrastructure construction markets, supported by a premier national precast partner network with strong concrete supplier relationships.
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Provides access to a premier national precast partner network with strong concrete supplier relationships, creating a durable competitive advantage.
“This acquisition adds highly complementary stormwater storage products and solutions to ADS’ comprehensive portfolio, increasing exposure to a growing segment of the market,” ADS President and Chief Executive Officer Scott Barbour said in a statement.
Read supporting passage
adds highly complementary stormwater storage products and solutions to ADS’ comprehensive portfolio, increasing exposure to a growing segment of the market
“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,” Olds said.
Read supporting passage
we are confident we can bring those solutions to a far broader set of customers.
For the 12-month period ending July 2026, StormTrap generated approximately $165 million in revenue and approximately $40 million in adjusted EBITDA.
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StormTrap generated approximately $165 million in revenue and approximately $40 million in adjusted EBITDA over the last-twelve-months ending July 2026. The transaction value, net of estimated tax benefits, represents a multiple of approximately 10x adjusted EBITDA for the trailing twelve months ending July 2026, inclusive of expected run-rate cost synergies.
The acquisition is scheduled to close in the fourth quarter of calendar 2026, subject to customary closing conditions.
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The Boards of Directors of both companies have unanimously approved the transaction, which is subject to customary closing conditions, including the receipt of required regulatory approvals. The transaction is expected to close in the fourth quarter of calendar 2026.