Advanced Drainage Systems Inc. of Hilliard, Ohio, is expanding into concrete with the acquisition of Foltz Concrete Pipe Co. LLC in Winston-Salem, N.C.
ADS announced April 1 that it had completed the acquisition.
“I know it probably shocked some people,” ADS Chairman and CEO Joe Chlapaty said in an April 1 telephone interview.
“ADS does not stand for Advanced Plastics Systems. It stands for Advanced Drainage. There is no change of philosophy, just a broadening. For us to say that concrete pipe does not have a place … would be foolish on our parts.”
The company has a goal of incorporating concrete pipe into its operation to become a more customer-centric company, said marketing director Tori Durliat.
“We want to provide the most product and service for our customers,” she said. “We're not leaving the plastics market at all.”
Chlapaty said this is the first of many smaller acquisitions ADS will make this year. It has its sights set on more growth in plastics as well. The Foltz acquisition also will be a stepping stone for similar purchases.
“This is not going to be a one-time event in terms of our expansion into a broader product line,” he said. “We're always looking at broader opportunities. This is the initiation of an expansion of product line.”
Chlapaty remains optimistic about the infrastructure market and general improvement of the economy.
“We think we're at the bottom of it,” he said. “Housing is going to come back. We think infrastructure is a great position to be in. Looking toward the future — we say this with modesty — we think that we're well-positioned.”
Foltz was purchased by George Sowers in 1997; the company originally was established in 1931. Foltz produces single-offset joint concrete pipes and catch basins and other precast products.
Copyright 2010 Crain Communications Inc. All Rights Reserved.