Advanced Drainage Systems Takes Operational Control of BaySaver Joint Venture

Advanced Drainage Systems Inc. (ADS), a global manufacturer of water management products and solutions for commercial, residential, infrastructure and agricultural applications, has acquired operational control of its BaySaver LLC joint venture from its partner, BaySaver Technologies Inc. (BTI). Under its BaySeparator and BayFilter brands, BaySaver manufactures storm water treatment units used in construction applications to remove sediments and other pollutants from storm water runoff.

Through this transaction, ADS has acquired an additional 10% from BTI for $3.2 million, bringing its interest in the joint venture to 65%. The joint venture was initially formed on July 15, 2013. The partnership combined the industry leading engineering, manufacturing, sales and distribution of ADS, with the research, development and technical approvals of BTI. During the 12 months ended March 31, 2015, BaySaver had revenue of approximately $11 million. BaySaver will continue to be based in Mount Airy, Md., with a focus on storm water filtration and separation technologies.

“We are very excited about advancing this partnership and the future prospects of the BaySaver product line,” said Joe Chlapaty, chairman and CEO. “We believe there are strong growth opportunities, both in the near and long-term in this growing application. Evolving requirements related to storm water management have created the demand for a more complete treatment methodology and this strategic partnership has strengthened our position as the only complete solutions provider for water management systems.

“As we move forward, we will continue to leverage the abilities of both ADS and BaySaver to develop and bring to market the latest storm water treatment products. This transaction shows our commitment to our strategy of allocating capital to invest in growth opportunities, whether organically or through acquisitions, that will further our industry leading position.”

As a result of the transaction, ADS will consolidate BaySaver for financial reporting purposes effective as of the July 17, 2015 closing date.

Source: Advanced Drainage Systems Inc.