Advanced Drainage Systems acquires Orenco Systems, Inc.

Advanced Drainage Systems acquired Orenco Systems, Inc. for $256.0 million gross (approximately $237.3 million net of $18.7 million cash acquired), a transaction completed in October 2024, structured as all cash (funded from cash on hand).

Orenco Systems, Inc. operates in Infiltrator / Onsite wastewater (later Wastewater segment), is based in United States (Sutherlin, Oregon). ADS's wholly-owned subsidiary Infiltrator Water Technologies, LLC completed the acquisition of Orenco Systems, Inc., a leading manufacturer of decentralized wastewater-management products for residential and non-residential end markets. Orenco's advanced treatment systems (including the AdvanTex AX line), effluent-treatment technologies and related accessories are used in onsite and decentralized commercial wastewater systems. ADS recorded a customer-relationships intangible of about $99 million and developed-technology intangible of about $42 million.

Broadens Infiltrator's onsite wastewater platform into advanced and decentralized commercial treatment, adding scalable technologies for rural and light-commercial applications.

Infiltrator reportable segment (subsequently the Wastewater segment) ADS recorded preliminary goodwill of $103.7 million attributable to expected operating efficiencies.

Advisory firms were not disclosed for this transaction.

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