Advanced Drainage Systems purchases Infiltrator Water Technologies
Advanced Drainage Systems, Inc. ("ADS" or the "Company"), a leading global manufacturer of water management products and solutions for commercial, residential, infrastructure and agricultural applications, announced the acquisition of Infiltrator Water Technologies, a leader in on-site septic wastewater treatment for a purchase price of approximately $1.08 billion, from an affiliate of the Ontario Teachers' Pension Plan and other stockholders.
"We are very excited to be joining forces with Infiltrator, a company we know well and have worked with over the years as one of our longstanding strategic partners," said Scott Barbour, President and CEO of ADS. "Infiltrator is a natural fit for us and for our customers, aligning closely with our growth strategies while accelerating the key drivers of our three-year plan—sales growth, margin expansion and cash flow generation—that we announced at our Investor Day last year. This acquisition will allow us to offer an enhanced suite of water management solutions to a broader set of customers and expand our addressable opportunity in the attractive and related on-site septic business. We look forward to working with the Infiltrator team to continue building on both companies' strengths, as leaders in providing water management solutions for our customers."
"This acquisition is a welcomed extension of our more than 15-year partnership built on mutual admiration and respect. We have always shared a similar vision and core values, executed comparable conversion strategies to displace traditional materials, and remained committed to developing innovative, best-in-class products while maintaining a dedication to safety, operational excellence and sustainability through our recycling activities," said Roy Moore, President and CEO of Infiltrator Water Technologies.
Combination Benefits
Infiltrator is a leading national provider of plastic leach field chambers and systems, septic tanks and accessories, primarily for use in residential applications. Infiltrator products are used in on-site water treatment systems in the U.S. and Canada and generated approximately $275 million in revenue and $89 million in adjusted EBITDA during 2018. Infiltrator has been a longstanding supplier and customer of ADS for over 15 years.
This acquisition builds on ADS' core strengths in water management by combining Infiltrator's leading position in on-site septic wastewater management with ADS' core stormwater-focused platform. This extends ADS' addressable opportunity into the attractive and related on-site septic business. The on-site septic business shares similar conversion dynamics to ADS' core stormwater business, with plastic septic chambers and tanks gaining share faster than traditional products.
