ADS to Acquire StormTrap for $530M, Expanding Stormwater Portfolio
WMS is trading near its 52-week low of $124.61 (2.1% above the low).
Summary
ADS is buying StormTrap Investments from PSP Cap for about $530 million, or $450 million after tax benefits. StormTrap brings roughly $165 million in revenue and $40 million in adjusted EBITDA, implying a 10x multiple net of synergies. The deal expands ADS into large-volume, space-constrained stormwater storage, a high-growth niche with regulatory tailwinds. Management expects it to be accretive to adjusted EPS in year one and to close in Q4 2026. This follows a strong Q1 where revenue topped $1 billion and EBITDA jumped 29%, giving ADS the balance sheet to act. The acquisition is a meaningful strategic move that broadens the product line and cross-selling opportunities in non-residential and infrastructure markets. ADS also launched the Smart Watershed Network.
Updates
· SEC 8-K — The 8-K attaches the Securities Purchase Agreement dated October 1, 2026, with a purchase price of approximately $530 million, or $450 million adjusted for tax benefits, subject to adjustments.
At the time of this announcement, 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 news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: BusinessWire.