PSP Capital, a global private investment firm founded by its Chairman, Penny Pritzker, announced that it has entered into a definitive agreement to sell StormTrap, a leading provider of stormwater management systems and water quality solutions, to Advanced Drainage Systems, Inc. (NYSE: WMS) (“ADS”), a global leader in innovative water management solutions.
The transaction, which was announced by ADS, is expected to close in the coming months, subject to customary regulatory approvals. The transaction values StormTrap at approximately $530 million.
PSP Capital invested in StormTrap in March 2022, partnering with the company’s management team to accelerate growth, expand its product portfolio, strengthen its research and development capabilities, and further solidify its successful position in the rapidly growing stormwater infrastructure market.
During PSP Capital’s ownership, StormTrap significantly expanded its operations and market reach. The company added more than 60 employees, constructed a state-of-the-art research and testing facility, launched multiple innovative water quality products, completed a strategic tuck-in acquisition, and more than doubled revenue and earnings. Today, StormTrap is recognized as a leading provider of highly engineered stormwater detention, infiltration, treatment, and water harvesting solutions serving municipalities, developers, engineers, and contractors across North America.
StormTrap’s growth was supported by powerful long-term trends, including increased development density, aging infrastructure, stricter stormwater regulations, rising land values, and the growing need for resilient infrastructure in the face of more frequent extreme weather events.
“We are so fortunate to have partnered with CEO Nate Olds and the outstanding StormTrap leadership team,” said Don Traubert, Managing Director with PSP Capital. “They have a deep passion for stormwater management that resonated from our first meeting. Over the past 5 years, StormTrap executed a thoughtful strategic growth plan that has reinforced its position as an industry leader and innovator. We are excited to see the business continue its strong trajectory under ADS’ ownership.”
Nate Olds, CEO of StormTrap, said, “From our first interaction, the PSP Capital team demonstrated an understanding of our business and embraced our long-term vision for growth. Together we invested in our people and organization, driving innovation and bolstering our leading market position. Our partnership with PSP Capital was highly collaborative and impactful, and we are well-positioned for this next chapter.”
The transaction represents a successful outcome for StormTrap, its employees, customers, and stakeholders and reinforces PSP Capital’s commitment to partnering with exceptional management teams to build market-leading businesses through long-term investment and strategic support.
About StormTrap
StormTrap is a leading provider of advanced stormwater management solutions across North America. Committed to protecting waterways and promoting sustainable infrastructure, StormTrap delivers engineered systems for detention, retention, infiltration, treatment, and water harvesting. Its proven, customizable solutions help civil engineers, developers, and municipalities meet stringent regulatory requirements while optimizing site design and reducing total project costs. StormTrap’s product portfolio includes SingleTrap®, DoubleTrap®, ShallowTrap®, StormSettler®, SiteSaver®, TrashTrap®, and PumpGuard®. For more information, visit www.stormtrap.com.
About PSP Capital and PSP Partners
PSP Partners is a Chicago-based private investment firm founded by its Chairman Penny Pritzker, an entrepreneur, civic leader, and philanthropist, and former U.S. Secretary of Commerce. The firm is comprised of a highly experienced team of investment professionals and business builders focused on partnering with entrepreneurs, business owners, and management teams to build market-leading businesses and develop valuable assets. With investment strategies focused on established businesses (PSP Capital), emerging/growth companies (PSP Growth) and real assets (Pritzker Realty Group), PSP Partners invests across stages and asset classes with a primary emphasis on business & technology services, advanced industrials and real estate that are well-aligned with its expertise and experience. For more information, visit: www.psppartners.com.
About Advanced Drainage Systems
Advanced Drainage Systems is a leading provider of innovative water management solutions in the stormwater and onsite wastewater industries. Through its portfolio of products and services, ADS helps customers across commercial, residential, infrastructure, and agricultural markets manage water more effectively while advancing environmental sustainability. For more information, visit www.adspipe.com.
Advisors
Raymond James acted as lead financial advisor and William Blair as co-advisor and Mayer Brown LLP acted as legal advisor to StormTrap and PSP Capital. Jefferies LLC acted as the exclusive financial advisor and Squire Patton Boggs (U.S.) LLP acted as legal advisor to ADS.
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