ADS to Acquire StormTrap for $530M, Expanding Stormwater Storage Portfolio
WMS is trading near its 52-week low of $124.61 (2.1% above the low).
Summary
ADS signed a definitive agreement to acquire StormTrap Investments for ~$530M ($450M net of tax benefits), adding complementary stormwater storage solutions. The deal is expected to be accretive to adjusted EPS in year one and close in Q4 2026.
Key Events · M&A and Partnerships · WMS
-
StormTrap Acquisition Announced
ADS entered into a Securities Purchase Agreement on October 1, 2026 to acquire StormTrap Investments, L.L.C. for approximately $530 million, or $450 million net of the present value of expected tax benefits.
-
StormTrap Financials Disclosed
StormTrap generated approximately $165 million in revenue and $40 million in adjusted EBITDA over the last twelve months ending July 2026. The transaction values StormTrap at roughly 10x adjusted EBITDA net of tax benefits and expected run-rate cost synergies.
-
Accretive to EPS in Year One
ADS expects the acquisition to be accretive to adjusted EPS in the first year, with immediate cross-selling opportunities in non-residential and infrastructure markets.
-
Funding and Closing Timeline
The deal will be funded with cash on hand and existing credit facility capacity. Closing is expected in Q4 calendar 2026, subject to HSR antitrust clearance and other customary conditions.
Analysis · WMS · Industrial Applications And Services
ADS is acquiring StormTrap Investments from PSP Capital for approximately $530 million ($450 million net of expected tax benefits), a deal that adds large-volume, space-constrained stormwater storage solutions to ADS's portfolio. StormTrap generated roughly $165 million in revenue and $40 million in adjusted EBITDA over the last twelve months, implying a ~10x EBITDA multiple net of tax benefits and expected synergies. The transaction is expected to be accretive to adjusted EPS in year one and closes in Q4 2026, subject to HSR clearance. Funded with cash on hand and existing credit capacity, this is a meaningful strategic expansion into a complementary, spec-driven commercial segment with cross-selling opportunities in non-residential and infrastructure markets.
How filings like this one have moved
In the 30 days to Oct 5, 2026, 36.9% of the 964 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.65%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, WMS was trading at $127.27 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $9.6B. The 52-week trading range was $124.61 to $179.32. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.