Advanced Drainage Systems

Advanced Drainage Systems, Inc. (ADS) is an American infrastructure-products manufacturer focused on drainage, stormwater management, wastewater treatment, and related water-management applications. Founded in 1966 by engineers Ron Martin and Marty Sixt, the company developed from a central Ohio operation into a major producer of thermoplastic drainage products. Its headquarters are in Hilliard, Ohio. ADS is best known for high-density polyethylene (HDPE) pipe, including corrugated pipe used to collect, convey, and discharge stormwater and subsurface drainage. The company also designs and markets polypropylene and polyethylene pipes, fittings, drainage structures, septic tanks and accessories, plastic leach-field chambers, stormwater retention and detention chambers, and water filters and separators. These products are used in residential and commercial construction, transportation and other infrastructure projects, agriculture, land development, and decentralized wastewater systems. The company became publicly traded through an initial public offering on the New York Stock Exchange in July 2014. The offering raised $232 million, providing ADS with access to public-market capital as it expanded its manufacturing and distribution footprint. Its common stock trades under the ticker WMS. In 2015, ADS expanded in Canada by acquiring Ideal Pipe of Ontario. In 2019, it made a much larger move into wastewater and onsite water treatment by acquiring Infiltrator Water Technologies from the Ontario Teachers’ Pension Plan for $1.08 billion. Leadership changes have included Joe Chlapaty’s appointment as chief executive officer in 2004, his retirement in 2017, and his succession by Scott Barbour. The company has emphasized the use of recycled materials in its pipe production; approximately 65% of its pipes were reported to have been made from recycled materials in 2019. Its business remains principally North American: in 2020, the United States accounted for 93% of sales and Canada for 6%. ADS therefore combines a manufacturing brand identity with an infrastructure-systems positioning, supplying products that support stormwater conveyance, flood-control and retention systems, agricultural drainage, septic and leach-field installations, and broader site-development needs.

Advanced Drainage Systems was established in 1966 by engineers Ron Martin and Marty Sixt. The company initially developed around the manufacture and sale of drainage products, with its operations later moving to central Ohio in the early 1970s. From that base, ADS built a business centered on thermoplastic pipe and related systems for managing water below and above ground. Its core product development focused on polyethylene and polypropylene drainage solutions. HDPE corrugated pipe became particularly important because of its use in stormwater collection, culvert and conveyance applications, subsurface drainage, agricultural projects, and site development. Over time, ADS expanded beyond pipe into fittings, drainage structures, stormwater retention and detention chambers, septic tanks, plastic leach-field chambers, filters, and water separators. This broadened the company from a pipe manufacturer into a supplier of integrated drainage and water-management components. A major corporate transition occurred in 2004, when Joe Chlapaty became chief executive officer. During his tenure, ADS continued expanding its manufacturing and market presence. Chlapaty retired as CEO in 2017 and was succeeded by Scott Barbour. ADS entered the public markets in July 2014 through an initial public offering on the New York Stock Exchange. The transaction raised $232 million. Public listing gave the company additional financial access while it continued developing its North American manufacturing, distribution, and product portfolio. The shares trade under the ticker WMS. The company pursued geographic and category expansion through acquisitions. In February 2015, it purchased Ideal Pipe of Ontario for $45 million, strengthening its position in the Canadian pipe market. In July 2019, it acquired Infiltrator Water Technologies from the Ontario Teachers’ Pension Plan for $1.08 billion. Infiltrator added products and capabilities in septic, leach-field, and decentralized wastewater systems, extending ADS’s reach beyond stormwater and drainage into onsite wastewater treatment. Sustainability and material reuse have also been part of the company’s manufacturing profile. Reference material reported that approximately 65% of ADS pipes were made from recycled materials in 2019. The company’s products serve construction, transportation and other infrastructure, agriculture, land development, stormwater-management, and wastewater markets. Its sales have remained heavily concentrated in North America; in 2020, the United States accounted for 93% of sales and Canada for 6%. ADS continues to operate as a public company headquartered in Hilliard, Ohio. Its business combines pipe manufacturing, stormwater infrastructure, and onsite wastewater systems, positioning the brand as a supplier of physical products and engineered components used to collect, convey, retain, filter, and manage water.

• 2019

  Infiltrator Water Technologies acquisition

  [1]Advanced Drainage Systemsen.wikipedia.org

  ADS acquired Infiltrator Water Technologies for $1.08 billion, expanding into septic and onsite wastewater systems.

• 2017

  CEO succession

  [1]Advanced Drainage Systemsen.wikipedia.org

  Joe Chlapaty retired as CEO and Scott Barbour succeeded him.

• 2015

  Ideal Pipe acquisition

  [1]Advanced Drainage Systemsen.wikipedia.org

  ADS acquired Ideal Pipe of Ontario for $45 million.

• 2014

  Initial public offering

  [1]Advanced Drainage Systemsen.wikipedia.org

  ADS completed an IPO on the New York Stock Exchange, raising $232 million.

• 2004

  Joe Chlapaty becomes CEO

  [1]Advanced Drainage Systemsen.wikipedia.org

  Joe Chlapaty became chief executive officer.

• 1970

  Operations move to central Ohio

  [1]Advanced Drainage Systemsen.wikipedia.org

  The company moved its operations to central Ohio in the early 1970s.

• 1966

  Company founded

  [1]Advanced Drainage Systemsen.wikipedia.org

  Engineers Ron Martin and Marty Sixt founded Advanced Drainage Systems.

A North American infrastructure and water-management systems supplier serving construction, transportation, agriculture, land development, stormwater, and decentralized wastewater markets.

• Drainage pipe

  HDPE drainage pipe

  Corrugated high-density polyethylene pipe is a central ADS product category. It is used for stormwater collection and conveyance, culverts, subsurface drainage, site drainage, agricultural water management, and other civil-engineering applications. The products are supplied in configurations intended to connect with structures, fittings, and broader stormwater systems.

• Stormwater infrastructure

  Stormwater management systems

  ADS supplies components for collecting, conveying, retaining, detaining, filtering, and discharging stormwater. The portfolio includes chambers, drainage structures, fittings, filters, separators, and associated pipe systems used in commercial development, transportation infrastructure, residential construction, and other land-development projects.

• Onsite wastewater · 2019

  Infiltrator wastewater systems

  The Infiltrator business broadened ADS’s portfolio into decentralized wastewater treatment. Its product area includes plastic leach-field chambers, septic tanks, and related accessories and systems used for onsite wastewater treatment and dispersal where centralized sewer infrastructure is unavailable or unsuitable.

• Agricultural water management

  Agricultural drainage products

  ADS products serve agricultural drainage and land-water-management requirements. Applications include moving excess water away from fields and managing subsurface or surface drainage through pipe and associated system components.

• Water treatment components

  Water filters and separators

  Water filters and separators form part of the company’s broader stormwater and water-management offering. These products support the treatment or separation of water flows within drainage and stormwater systems and complement ADS pipe, chamber, and structure products.

• 2019

  Acquire Infiltrator Water TechnologiesM&A

  Background

  ADS aimed to expand beyond drainage and stormwater pipe into septic, leach-field, and decentralized wastewater systems.

  Action taken

  ADS acquired Infiltrator Water Technologies from the Ontario Teachers’ Pension Plan.

  Aftermath

  The transaction significantly broadened ADS’s onsite wastewater and water-treatment portfolio.

  Acquisition price. $1.08 billion (July 2019)

  Source

• 2015

  Acquire Ideal Pipe of OntarioM&A

  Background

  ADS sought to expand its presence in the Canadian drainage-pipe market.

  Action taken

  The company acquired Ideal Pipe of Ontario.

  Aftermath

  The acquisition strengthened ADS’s Canadian operations.

  Acquisition price. $45 million (February 2015)

  Source

• 2014

  Go public through a New York Stock Exchange IPOOther

  Background

  ADS had grown as a drainage-products manufacturer and sought public-market access.

  Action taken

  The company completed an initial public offering in July 2014.

  Aftermath

  The offering raised $232 million and ADS became publicly traded under the ticker WMS.

  IPO proceeds. $232 million (July 2014)

  Source

1. 1Advanced Drainage Systemsen.wikipedia.org
2. 2Advanced Drainage Systems official websiteads-pipe.com