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February 08, 2017 01:00 AM

ADS adds three US pipe plants with Plastic Tubing Industries purchase

Michael Lauzon
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    Advanced Drainage Systems Inc.
    Advanced Drainage Systems Inc.'s storm management system.

    Advanced Drainage Systems Inc. has expanded its footprint in the Southern U.S. by acquiring Plastic Tubing Industries Inc. of Orlando, Fla.

    PTI makes high density polyethylene pipe and related accessories at plants in Apopka, Fla.; Warrington, Ga., and Hempstead, Texas. It logged sales of about $11 million last year.

    ADS paid $9.5 million for PTI, formerly a family-owned business established in 1969. Its main markets are stormwater and wastewater management and agricultural applications. The acquisition boosts ADS's number of plastic pipe plants to 63, supported by 31 distribution centers.

    “PTI is a highly complementary business, carries a strong brand and has exceptional customer loyalty dating back more than 40 years,” noted ADS Chairman and CEO Joe Chlapaty in a news release.

    Prior to its purchase of PTI, ADS already had several plants in the South, among them plastic pipe manufacturing factories in Yoakum, Texas; Atlanta and Perry, Ga.; and Sebring and Winter Garden, Fla.

    ADS expanded capacity in Sebring last year. It also opened a distribution center in Panama City Beach, Fla., early in 2016. Elsewhere, ADS started construction last year for a new pipe plant in Harrisonville, Mo., its first in Missouri. The 73,000-square-foot facility is due to open in the first half of 2017 and will employ about 50 when fully staffed.

    The acquisition also brings ADS new water reservoir technology developed by PTI. The patented Pipe-R system is made of arrays of recycled HDPE pipe that are buried underground to recharge groundwater and to store water for reuse in gray water applications. PTI says the system has low installation costs, has 97 percent void space and requires no gravel in non-load bearing situations. The system can be used with the company's Bold & Gold purification media, a blend of minerals, sand and clay, to remove nitrogen and phosphorus in stormwater, wastewater and agricultural runoff.

    ADS also has an underground water storage product, StormTech chambers, that are injection molded from polypropylene. StormTech is designed for stormwater management.

    ADS makes a wide range of HDPE and polypropylene pipe for infrastructure, agriculture and residential and non-residential enduses. It logged sales of $1.29 billion for the year ended March 31. Plastics News data pegs ADS as the second largest extruder of plastic pipe, profiles and tubing in North America.

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