The transaction is expected to be accretive to adjusted EPS in the first year and supports ADS' core growth strategy by expanding its product portfolio into high-demand, high-growth categories, enhancing market opportunities, and further broadening its product offering to customers across the stormwater management landscape.

Transaction Benefits

Expands Addressable Market with Complementary Offering in Stormwater Storage Solutions

  • Broadens addressable market by adding exposure to large volume, deep, space-constrained stormwater storage projects, creating an opportunity for ADS to serve a larger segment of the stormwater storage market.
  • Adds highly complementary and innovative solutions in stormwater storage and treatment that optimize storage capacity for developers.

Enhances Go-to-Market Capabilities with Spec-Driven Commercial Model

  • Leverages spec-driven and high-touch sales process supported by deep, local relationships with key existing and prospective customers.
  • Provides access to a premier national precast partner network with strong concrete supplier relationships, creating a durable competitive advantage.

Provides Immediate Cross-Selling Opportunities in Non-Residential and Infrastructure Markets

  • Opens channels to introduce ADS' portfolio of water management solutions to a new customer audience.
  • Increases participation across infrastructure and commercial development projects with unique site constraints.

Offers Significant Growth Opportunities Linked to Secular and Regulatory Tailwinds and Expanded Customer Relationships

  • Benefits from federal, state, and local stormwater regulations expected to continue to drive demand for StormTrap’s complementary products.
  • Expands StormTrap’s geographic reach through targeted commercial investments and access to ADS’ nationwide footprint.

Transaction Details

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 transaction will be funded by cash on hand and existing credit line capacity at ADS. 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.