Advanced Drainage Systems announced an agreement to buy StormTrap Investments LLC for about $530 million. The Hilliard, Ohio, company also cited a roughly $450 million figure, but that deducts the estimated present value of future tax benefits from the purchase price.
StormTrap designs underground systems for managing rainwater runoff. Its products can hold water and control when it is released, allow it to enter surrounding soil, or remove pollutants. That gives developers and municipalities ways to manage drainage while retaining usable space above ground. The systems are designed for projects that must meet runoff requirements despite space constraints. StormTrap also offers engineering support as projects move from planning toward installation.
The buyer already sells pipes, drainage structures, storage chambers and water-treatment products. Its water-management process spans collecting runoff, moving it away from roads and fields, storing it and treating it before release. The proposed purchase would extend an existing water-infrastructure business.
The acquisition would be paid for with available cash and existing credit capacity. Both boards approved it, but completion remains subject to customary conditions and required regulatory approvals. The company expects to close during the fourth quarter of calendar 2026.
Management expects the combination to help sell more products to each company’s customers and increase adjusted earnings per share in the first year. Those are forecasts that depend on completing and integrating the transaction, rather than benefits already recorded.