Infiltrator Water Technologies, which is based in Connecticut, is engaged in providing on-site septic wastewater treatment
Image: Infiltrator Water Technologies to be acquired by Advanced Drainage Systems. Photo: courtesy of rawpixel/Pixabay.
Advanced Drainage Systems (ADS) has agreed to acquire Infiltrator Water Technologies for $1.08bn (£890m) from an affiliate of the Ontario Teachers’ Pension Plan and other shareholders.
Based in Connecticut, Infiltrator Water Technologies is engaged in providing on-site septic wastewater treatment. The company provides plastic leach field chambers and systems, septic tanks and accessories, which are mainly for use in residential applications.
Its products are used in on-site water treatment systems across the US and Canada.
Last year, Infiltrator Water Technologies acquired Delta Environmental assets from Pentair Flow Technologies in a move to expand into the advanced wastewater treatment segment of the industry.
On the other hand, the Ohio-based Advanced Drainage Systems offers water management products and solutions for commercial, residential, agricultural and infrastructure applications. The company manufactures thermoplastic corrugated pipe and ancillary products and has a global network of nearly 60 manufacturing plants and more than 30 distribution centres.
Infiltrator Water Technologies president and CEO Roy Moore said: “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.”
Benefits of acquiring Infiltrator Water Technologies for ADS
The acquisition is said to consolidate on Advanced Drainage Systems’ main strengths in water management by combining Infiltrator Water Technologies’ position in on-site septic wastewater management with its own core stormwater-focused platform.
Furthermore, the transaction helps the Ohio-based company address opportunities in the related on-site septic business, which it says has similar conversion dynamics to its core stormwater business. The company said that plastic septic chambers and tanks are gaining share faster than conventional products.
Advanced Drainage Systems president and CEO Scott Barbour said: “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.”