Advanced Drainage Systems (ADS) has entered into a definitive agreement to acquire StormTrap Investments for approximately $530 million, expanding ADS’ portfolio into large-volume stormwater storage solutions for space-constrained applications.

StormTrap generated approximately $165 million in revenue and $40 million in adjusted EBITDA over the 12 months ending July 2026. ADS said the transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions and regulatory approvals.

StormTrap specializes in engineered stormwater storage and treatment systems designed for projects with limited available space. ADS said the acquisition will expand its addressable market for stormwater storage and provide opportunities to serve commercial development and infrastructure projects with challenging site constraints.

The companies also cited opportunities to combine StormTrap’s spec-driven sales model and precast partner network with ADS’ nationwide sales platform and existing stormwater portfolio. ADS expects the acquisition to create cross-selling opportunities for its broader water management products.

The purchase price represents approximately $450 million when adjusted for the present value of expected tax benefits. ADS said the transaction will be funded with cash on hand and existing credit line capacity and is expected to be accretive to adjusted earnings per share in its first year.

The acquisition would add to ADS’ existing stormwater management portfolio as demand for storage infrastructure continues to be driven by stormwater regulations and development constraints, according to the company.