Infiltrator Water Technologies, a subsidiary of Hilliard, Ohio-based Advanced Drainage Systems Inc., will acquire Sutherlin, Ore.-based Orenco Systems Inc., to expand its offering of onsite septic wastewater treatment products.
Founded in 1981, Orenco manufactures fiberglass tanks, enclosures, structures and controls for the collection, treatment, pumping and filtration systems for residential, commercial and municipal uses.
The Orenco deal accelerates ADS's growth in the advanced wastewater treatment space, which will open up new opportunities in a highly fragmented and fast-growing segment of onsite septic wastewater, according to ADS President and CEO Scott Barbour.
"Employees will be retained and plants will remain open," Michael Higgins, ADS' vice president of corporate strategy & investor relations, said in an email.
Higgins declined to disclose the purchase price and number of Orenco employees and facilities being acquired.
Founded in 1966, ADS and its Infiltrator subsidiary manufacture stormwater and onsite septic wastewater products for commercial, residential, infrastructure and agriculture uses.
"This acquisition is a great strategic fit for the Infiltrator business. The enhanced portfolio of complementary solutions combined with the broader sales force, geographic reach and distribution footprint will drive further penetration in this attractive segment," Barbour said in a news release.
"We look forward to working with the Orenco team to continue building on both companies' strengths to deliver exceptional products and services to customers," he said.
Orenco was founded in response to widespread failures in Oregon's onsite wastewater systems and has grown to employ hundreds of people and have more than 300 points of distribution in North America, according to the company website.
ADS officials point to five "combination benefits," starting with the formation of a premier provider of residential and non-residential advanced wastewater treatment systems with expanded sales in a fragmented segment driven by regulatory tailwinds.
Other benefits cited include the opportunity to accelerate engineering and product development in an evolving market; collaboration on scalable opportunities for efficiency with an Infiltrator team that has a proven track record of margin expansion; and combining sales and engineering teams as well as operational footprints and distribution networks will enhance scale to further penetrate a growing segment.
In addition, both companies are focused on environmental stewardship regarding water management and preservation, safety and operational excellence, the release says.
With $2.2 billion in annual sales, ADS is the fourth largest pipe, profile and tubing producer in North America, according to Plastics News' latest ranking.
The company has a vast network of about 70 manufacturing plants and 40 distribution centers.
ADS also is the second largest recycler, processing some 542.5 million pounds of plastic annually.
The deal with Orenco is expected to close in ADS's third quarter of fiscal 2025.