ADS to acquire StormTrap for ~$530M ($450M net of tax benefits), accretive to adjusted EPS in year one

ADVANCED DRAINAGE SYSTEMS, INC.

Deal value ~$530M, or ~$450M adjusted for present value of expected tax benefits; funded with cash on hand and existing ADS credit facility.
StormTrap generated ~$165M revenue and ~$40M adjusted EBITDA for LTM ending July 2026; purchase multiple ~10x adjusted EBITDA net of tax benefits incl. run-rate synergies.
Expected to close Q4 calendar 2026; subject to customary conditions including antitrust approvals; boards of both companies unanimously approved.
ADS expects deal accretive to adjusted EPS in first year; adds large volume, space-constrained stormwater storage, boosting non-residential and infrastructure cross-selling.
StormTrap CEO Nate Olds praised ADS' national scale; ADS CEO Scott Barbour cited integration expertise. Jefferies advised ADS; Raymond James/William Blair advised sellers.

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