Watch for HSR clearance timeline and any second request that could push close beyond Q4 2026. Post-close, monitor integration updates and cross-selling traction in non-residential and infrastructure channels. The ~10x multiple with synergies suggests management sees meaningful cost and revenue upside.
Price Chart
Executive Summary
Advanced Drainage Systems (WMS) has entered into a definitive agreement to acquire StormTrap Investments LLC, a leader in large-volume engineered stormwater solutions, for $530 million in enterprise value ($450 million net of expected tax benefits). StormTrap generated ~$165M revenue and ~$40M adjusted EBITDA in the LTM ending July 2026, implying a ~10x EBITDA multiple inclusive of run-rate cost synergies. The acquisition is expected to be accretive to adjusted EPS in year one and close in Q4 2026, subject to HSR antitrust clearance.
Key Financial Metrics
Key Facts
- Enterprise value of $530 million, or ~$450 million adjusted for present value of expected tax benefits
- StormTrap LTM revenue of ~$165 million and adjusted EBITDA of ~$40 million through July 2026
- Transaction multiple of ~10x adjusted EBITDA inclusive of expected run-rate cost synergies
- Expected to close in Q4 2026, subject to HSR antitrust clearance
- Funding via cash on hand and existing credit facility; no equity issuance required
- Expected to be accretive to adjusted EPS in the first year post-close
- Boards of both companies have unanimously approved the transaction
Financial Impact
$530 million enterprise value ($450 million net of tax benefits); ~10x LTM adjusted EBITDA including synergies
Risk Factors
- HSR antitrust review could delay or impose conditions on the close
- Integration risk: StormTrap's spec-driven precast model differs from ADS's plastic pipe distribution network
- Execution risk on realizing stated cost synergies and cross-selling benefits
- Potential near-term leverage increase from funding the deal via existing credit facility
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-413092 |
| Document: d119803d8k.htm | 0001193125-26-413092 |
| Document: d119803dex991.htm | 0001193125-26-413092 |
| Document: 0001193125-26-413092-index-headers.html | 0001193125-26-413092 |
| Document: 0001193125-26-413092-index.html | 0001193125-26-413092 |
| Document: 0001193125-26-413092.txt | 0001193125-26-413092 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 5, 2026 22d ago | 8-K | $129.43 $125.93 | ▼ −2.70% | ▼ −3.13% | $130.94 (+1.17%) |
Aug 26, 2026 8w ago | Institutional Cluster | $141.46 $132.64 | ▼ −6.24% | ▼ −6.11% | $130.94 (−7.44%) |
Aug 6, 2026 11w ago | 8-K | $148.45 $149.23 | ▲ +0.53% | ▼ −0.69% | $130.94 (−11.80%) |
Jun 18, 2026 18w ago | 8-K | $147.12 $155.26 | ▲ +5.53% | ▲ +7.20% | $130.94 (−11.00%) |
May 21, 2026 22w ago | 8-K | $132.81 $135.65 | ▲ +2.14% | ▲ +0.48% | $130.94 (−1.41%) |
May 21, 2026 22w ago | 8-K | $135.15 $140.05 | ▲ +3.63% | ▲ +2.03% | $130.94 (−3.12%) |
US Market Status
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