Advanced Drainage Systems Inc. has completed its acquisition of competitor Hancor Inc., two days after the Federal Trade Commission cleared the merger after a second request for information.
The marriage gives the combined companies 43 domestic and international manufacturing facilities, making 2-inch through 60-inch pipe for drainage and storm sewer markets.
ADS President Joe Chlapaty had announced the proposed merger in April.
The FTC made a second request for information in June, but cleared the deal July 27.
``Our successful integration of the two companies will be critical in our success going forward,'' he said.
``Now that the acquisition is complete, we can hit the ground running.''
Although both companies are headquartered in Ohio, he said the operations will not change. Hancor has made its home in Findlay, in northwest Ohio, while ADS is in the middle of the state in Hilliard, a suburb of Columbus.
``Both operations will be maintained in their present form,'' he said. ``On Monday, it will be business as usual.''
The deal combines the two largest players in large-diameter, high density polyethylene, corrugated drainage pipe, which was a concern for FTC scrutiny.
Sources have said that, including concrete, steel and aluminum, ADS and Hancor together represent only a small piece of the overall market.
But because they are the only two national manufacturers of the HDPE variety, the proposal raised eyebrows among regional mom-and-pop operations, which represent the rest of the competition.
``We will have an unmatched breadth of product line and field sales engineering experience ... [and] we will be in a stronger position to compete with manufacturers of steel, concrete and PVC,'' Chlapaty said.