For the second time in two months, plastic pipe leader Advanced Drainage Systems Inc. has made an acquisition in the concrete pipe market.
This time, Hilliard, Ohio-based ADS has purchased Piedmont Concrete of Pineville, N.C. In April, ADS announced it had acquired Foltz Concrete Pipe Co. LLC of Winston-Salem, N.C. No purchase price was disclosed in either deal.
In a May 20 phone interview, ADS Chairman and CEO Joe Chlapaty said his firm isn't done in this [concrete] arena, but ADS is not abandoning plastics.
Piedmont makes concrete structures such as inlet boxes and manholes that complement the concrete pipes and catch basins made by Foltz. ADS would not provide its sales, employee totals or other details for either acquisition.
ADS will entertain other offers in concrete pipe, Chlapaty said.
Markets for ADS' plastic pipe products have improved so far in 2010, Chlapaty said, but they remain below previous peaks.
Government stimulus spending seems to be having more of an impact this year, he said. Things are definitely trending up, but we're not back to where we were.
ADS placed third in Plastics News' ranking of North American plastic pipe, profile and tubing makers, with related sales of $900 million. The firm is the region's largest maker of corrugated high density polyethylene pipe.
ADS opened a new HDPE pipe extrusion plant in Kitchener, Ontario, in mid-2009 and recently opened a similar facility in Drummondville, Quebec.
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