Advanced Drainage Systems, Inc. (NYSE: WMS) announced on October 1, 2026, that it has entered into a definitive agreement to acquire StormTrap Investments, L.L.C. The transaction, valued at approximately $530 million, is subject to a purchase price adjustment based on the present value of expected tax benefits, which would lower the value to roughly $450 million.
StormTrap is described as an industry leader in large-volume, space-constrained stormwater solutions. The company generated approximately $165 million in revenue and approximately $40 million in adjusted EBITDA over the trailing twelve months ending July 2026. The transaction is expected to be accretive to adjusted earnings per share (EPS) in the first year.
Advanced Drainage Systems stated that the acquisition will expand its addressable market by adding complementary stormwater storage products and solutions. The company plans to fund the deal using a combination of cash on hand and its existing credit facility. The Boards of Directors of both companies have unanimously approved the transaction, which is expected to close in the fourth quarter of 2026. Closing is contingent upon customary conditions, including the receipt of required regulatory approvals.
StormTrap is owned by PSP Capital and PSP Partners, a Chicago-based private investment firm founded by Penny Pritzker. Jefferies LLC served as the exclusive financial advisor to Advanced Drainage Systems, while Raymond James acted as the lead financial advisor to StormTrap and PSP Capital.
