ADVANCED DRAINAGE SYSTEMS, INC. [WMS] - equity issuance
The equity issuance will be funded by a combination of cash on hand and funds from the existing credit facility, with customary representations and warranties from the sellers included in the Purchase Agreement.
Why this matters
Advanced Drainage Systems, Inc. (ADS), incorporated in Delaware, specializes in manufacturing and selling engineered stormwater management solutions, including plastic pipes and related products, primarily serving the construction and infrastructure sectors. The company has announced a definitive agreement to acquire StormTrap Investments LLC, a leader in large volume stormwater solutions, for approximately $530 million, adjusted to $450 million for expected tax benefits. This acquisition aims to expand ADS's product portfolio into high-demand categories and is expected to be accretive to adjusted EPS in the first year. The purchase will be funded through cash on hand and the existing credit facility, with customary representations and warranties included in the Purchase Agreement.