Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • Digital Edition
    • End Markets
    • Special Reports
    • Newsletters
    • Resin pricing news
    • Videos
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • K Show
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Processor of the Year
    • Best Places to Work
    • Women Breaking the Mold
    • Rising Stars
    • Diversity
    • Most Interesting Social Media Accounts in Plastics
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • Pellets and Politics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Fake Plastic Trees
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
  • Events
    • K Show Livestream
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Processor of the Year submissions
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics News Caps & Closures
    • Women Breaking the Mold Networking Forum
    • Plastics in Automotive
    • PN Live: Mergers and Acquisitions
    • Polymer Points Live
    • Numbers that Matter Live
    • Plastics in Politics Live
    • Sustainable Plastics Live
    • Plastics Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
  • Rankings & Data
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Directory
  • Resin Prices
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • Custom
    • Sponsored Content
    • LS Mtron Sponsored Content
    • Conair Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Classifieds
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
August 01, 2019 01:20 PM

ADS buys Infiltrator in $1B deal, adds new market

Catherine Kavanaugh
Staff Writer
Plastics News Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Inflitrator Water Technologies LLC

    Infiltrator Water Technologies, which is a market leader within the on-site wastewater treatment industry, was acquired by ADS Drainage Systems Inc.

    Hilliard, Ohio-based Advanced Drainage Systems Inc. has purchased one of its strategic partners, Infiltrator Water Technologies LLC, in a $1.08 billion deal with the Ontario Teachers' Pension Plan.

    The acquisition lets plastic pipe maker ADS, which is focused on managing stormwater for commercial, residential, infrastructure and agricultural applications, expand into the related area of septic wastewater treatment with a long-time customer.

    Old Saybrook, Conn.-based Infiltrator has used ADS products for more than 15 years. The company posted sales of $275 million in 2018 — up 9 percent from 2016 — for its plastic leach field chambers and septic tanks for mostly residential use.

    Infiltrator CEO Roy Moore and key managers will stay with the company and operate as a business unit within ADS.

    With annual sales of $1.4 billion, ADS ranks third among pipe, profile and tubing extruders in North America, according to Plastics News' latest ranking.

    The combined companies are expected to reach sales of $1.6 billion in fiscal year 2020 from manufacturing operations at 63 plants — 56 ADS and seven Infiltrator — that employ a total of 4,879 people, with 479 coming from Infiltrator.

    Both businesses are gaining market share as more customers turn to plastic systems for storm water and septic solutions over traditional materials like concrete. Plastic chambers and tanks made of high density polyethylene and polypropylene now account for about 50 percent of the $1.2 billion septic leach field and tank business.

    The combination of Infiltrator and ADS is expected to create synergies of $20 million to $25 million by the third year through manufacturing, recycling, logistics and significant cross-selling opportunities, ADS President and CEO Scott Barbour said in a conference call Thursday about ADS's quarterly results and the acquisition.

    Infiltrator Water Technologies LLC

    Barbour said Infiltrator is a natural fit for ADS with aligned growth strategies.

    "They're an innovative bunch with a lot of engineering capabilities and competencies around materials and injection molding," Barbour said.

    He described Infiltrator as a consistent innovator "keyed up" with new products and technologies from sustainable practices.

    "We have a big focus on recycling and sustainability within our company. It's primarily been focused on polyethylene," Barbour said. "Infiltrator's focus is on PP, also an important material for us that we use mainly in a virgin or resin capacity. We're very excited to tap into the engineering and recycling scale and competencies of Infiltrator to accelerate our use of PP recycled materials."

    Infiltrator, which is the parent company of Champion Polymer Recycling, is the fifth-largest consumer of post-industrial plastic in the U.S. ADS has a subsidiary called Green Line Polymers that recycles HDPE plastic and formulates it into recycled resin for the pipe maker. ADS is believed to be the largest consumer of recycled HDPE in the U.S.

    In addition to similar visions, conversion strategies and commitments to recycling, ADS and Infiltrator have a long history of strategic partnership. They formed a joint venture called StormTech LLC in 2003 where Infiltrator manufactured chambers for water retention and detention while ADS managed sales, marketing and engineering support. ADS acquired Infiltrator's interest in 2010. Then, in 2012, Infiltrator acquired ADS's septic chamber business.

    The latest deal closed July 31.

    "This acquisition is a welcomed extension of our more than 15-year partnership built on mutual admiration and respect," Moore said in a statement.

    ADS funded the acquisition from Ontario Teachers' Pension Plan with a new $1.4 billion credit facility, which will also help refinance existing debt.

    The pension plan, which has $191.1 billion in net assets, is Canada's largest single-professional pension plan.

    RECOMMENDED FOR YOU
    Plastics recycling must do better by consumers to succeed, professor says
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Most Popular
    1
    Industry sees Biden bioplastics goal as serious signal
    2
    Biden sets US goal to replace 90% of plastics with biomaterials
    3
    Material Insights: Challenges for Biden bioplastics goal
    4
    Official says Norfolk Southern fire likely started in rail car containing resin
    5
    Trinseo: Equipment failure blamed for latex emulsion leak
    SIGN UP FOR OUR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber News
    • Tire Business
    • Urethanes Technology
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • K Show
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • Processor of the Year
        • Best Places to Work
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Resin pricing news
      • Videos
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • Pellets and Politics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
      • Fake Plastic Trees
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • K Show Livestream
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics News Caps & Closures
        • Women Breaking the Mold Networking Forum
        • Plastics in Automotive
      • Industry Events
      • Injection Molding & Design Expo
      • Livestreams/Webinars
        • PN Live: Mergers and Acquisitions
      • Editorial Livestreams
        • Polymer Points Live
        • Numbers that Matter Live
        • Plastics in Politics Live
        • Sustainable Plastics Live
      • Ask the Expert
      • Plastics News Events Library
        • Plastics Caps & Closures Library
        • Plastics in Healthcare Library
        • Women Breaking the Mold Networking Forum Library
      • Processor of the Year submissions
    • Rankings & Data
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Directory
    • Resin Prices
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • Custom
      • Sponsored Content
      • LS Mtron Sponsored Content
      • Conair Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified