ADS to acquire StormTrap for $530 million from PSP Capital

Advanced Drainage Systems Inc., a company listed on the NYSE under ticker symbol WMS, is set to acquire StormTrap, a stormwater management systems provider, for roughly $530 million. The deal was announced by PSP Capital, the private investment firm that bought StormTrap in March 2022. Following PSP Capital's investment, StormTrap saw a significant expansion, hiring more than 60 employees, constructing a research and testing facility, and completing a strategic acquisition. The company's revenue and earnings more than doubled during this period.

Don Traubert, Managing Director at PSP Capital, expressed pride in partnering with StormTrap CEO Nate Olds and the leadership team. Over the past five years, StormTrap has implemented a strategic growth plan that has solidified its position as an industry leader and innovator. CEO Nate Olds of StormTrap commended the collaboration and impact of the partnership with PSP Capital.

Advanced Drainage Systems, the acquiring company, specializes in water management solutions for stormwater and onsite wastewater industries. The transaction, subject to regulatory approvals, is expected to close in the coming months. Raymond James served as the lead financial advisor, while William Blair acted as co-advisor to both StormTrap and PSP Capital.

Mayer Brown LLP provided legal advice for StormTrap and PSP Capital, while Jefferies LLC served as financial advisor and Squire Patton Boggs (U.S.) LLP acted as legal advisor to ADS.