Advanced Drainage Systems Announces Acquisition of Advanced Wastewater Treatment Leader Orenco Systems, Inc.

Advanced Drainage Systems, Inc. (NYSE: WMS) (“ADS” or the “Company”), a leading provider of innovative water management solutions in the stormwater and onsite septic wastewater industries, today announced the signing of a definitive agreement pursuant to which the Company’s wholly-owned subsidiary, Infiltrator Water Technologies (“Infiltrator”), will acquire Orenco Systems, Inc. (“Orenco”), a leading manufacturer of advanced onsite septic wastewater treatment products serving residential and non-residential end markets. The parties expect the transaction to close in the Company’s third quarter of fiscal 2025, subject to customary closing conditions.

“Orenco accelerates the Company’s growth in the advanced wastewater treatment space, opening up new opportunities in a highly fragmented and fast-growing segment of onsite septic wastewater,” said Scott Barbour, President and Chief Executive Officer. “This acquisition is a great strategic fit for the Infiltrator business. The enhanced portfolio of complementary solutions combined with the broader sales force, geographic reach and distribution footprint will drive further penetration in this attractive segment. We look forward to working with the Orenco team to continue building on both companies’ strengths to deliver exceptional products and services to customers.”

Combination Benefits

• Leadership – This transaction establishes a premier provider of residential and non-residential advanced wastewater treatment systems and expands sales in a fragmented segment driven by regulatory tailwinds.
• Innovation – By bringing together two industry leaders, there is significant opportunity to accelerate engineering and product development in an evolving market.
• Synergies – Collaboration on operational excellence will produce a scalable opportunity for efficiency, with an Infiltrator team that has a proven track record of margin expansion.
• Scale – The combined sales and engineering teams of Infiltrator and Orenco, as well as the combined operational footprint and distribution network, provide enhanced scale to further penetrate a growing segment.
• Environmental Stewardship – This transaction brings together two companies committed to creating innovative water management solutions that preserve water, the world’s most precious resource, with a shared commitment to safety, operational excellence and sustainability.

Transaction Details