US manufacturer Advanced Drainage Systems (ADS), which supplies stormwater and onsite wastewater products, has announced a definitive agreement to acquire StormTrap Investments LLC from PSP Capital, part of Chicago-based investment firm PSP Partners. The purchase price is approximately $530 million, falling to around $450 million when the present value of expected tax benefits is considered.
StormTrap provides engineered systems for stormwater detention, retention, infiltration, treatment and water harvesting across North America, focusing on large-volume projects where space is limited. Its clients include civil engineers, developers and municipalities that must meet regulatory requirements while optimising site design. In the 12 months to July 2026, the company recorded revenue of about $165 million.
ADS sees the deal as a way into a part of the market centred on large storage volumes. “This acquisition adds highly complementary stormwater storage products and solutions to ADS’ comprehensive portfolio, increasing exposure to a growing segment of the market,” said Scott Barbour, Chief Executive Officer and President of ADS.
Reaching new customers and regions
According to ADS, federal, state and local stormwater regulations are expected to continue supporting demand for StormTrap’s products. The company plans to extend StormTrap’s geographic reach through its own nationwide footprint, and to introduce its wider product range to a new customer base, increasing its participation in infrastructure and commercial development projects. StormTrap’s sales model is specification-driven and relies on a national network of precast partners and strong relationships with concrete suppliers.
Nate Olds, Chief Executive Officer of StormTrap, said: “StormTrap was built to solve challenging stormwater storage applications, and with ADS’ sales platform, history of successful integrations, and national scale, we are confident we can bring those solutions to a far broader set of customers.”
Both boards have unanimously approved the transaction, which ADS will fund with cash on hand and existing credit capacity. Subject to customary conditions, including regulatory approvals, it is expected to close in the fourth quarter of 2026.
