Advanced Drainage Systems to buy StormTrap for $530 million
The deal values StormTrap at about 11 times adjusted EBITDA before a tax benefit that lowers the effective price to $450 million
Published
Advanced Drainage Systems has agreed to buy StormTrap Investments from PSP Capital for approximately $530 million. StormTrap makes large volume, highly engineered stormwater storage systems.
Adjusted for the present value of expected tax benefits, the effective price falls to about $450 million. StormTrap generated approximately $165 million in revenue and approximately $40 million in adjusted EBITDA over the twelve months ended July 2026, putting the headline price at roughly 3.3 times revenue and about 11 times adjusted EBITDA.
Advanced Drainage Systems plans to fund the purchase with cash on hand and its existing credit facility, avoiding new debt or equity issuance. The deal is expected to close in the fourth quarter of calendar 2026, subject to customary closing conditions and regulatory approvals.
Because closing is not expected for several more quarters, StormTrap's revenue will stay off Advanced Drainage Systems' books for some time, leaving near term results unaffected. The acquisition adds scale to the company's stormwater infrastructure business and expands its engineered water management offering, while keeping the balance sheet impact contained.