Advanced Drainage Systems acquires Infiltrator Water Technologies (Infiltrator Water Technologies Ultimate Holdings, Inc.)

Advanced Drainage Systems acquired Infiltrator Water Technologies (Infiltrator Water Technologies Ultimate Holdings, Inc.) for approximately $1.08 billion in cash (subject to post-closing adjustments), a transaction completed in July 2019, structured as all cash (financed with borrowings under a new credit agreement).

Infiltrator Water Technologies (Infiltrator Water Technologies Ultimate Holdings, Inc.) operates in Infiltrator / Onsite wastewater (septic), is based in Old Saybrook, Connecticut, USA (products sold across the U.S. and Canada). ADS acquired Infiltrator Water Technologies via a reverse-triangular merger in which its subsidiary Ocean Sub, Inc. merged into Infiltrator, which became a wholly-owned ADS subsidiary. Signing and closing occurred simultaneously on July 31, 2019. Infiltrator is a leading national provider of plastic leach-field chambers and systems, septic tanks and accessories used primarily in residential onsite wastewater (septic) systems in the U.S. and Canada, and had been an ADS supplier and customer for over 15 years. ADS obtained a representation-and-warranty insurance policy as recourse for breaches of Infiltrator's reps and warranties.

Adds scale in the onsite septic wastewater industry and strengthens ADS's position as a leading global provider of plastic stormwater and wastewater solutions, expanding its combined addressable market to roughly $7 billion.

Infiltrator reportable segment (later renamed the Wastewater segment) ADS partly funded the purchase with a new credit agreement that replaced its prior facilities and in September 2019 raised roughly $293 million in a follow-on common-stock offering used mainly to repay borrowings.

Advisory firms were not disclosed for this transaction.

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