Advanced Drainage Systems acquires Plastic Tubing Industries
Acquisition to strengthen position in Southeast U.S.
HILLIARD, OHIO, FEBRUARY 7, 2017 -- Advanced Drainage Systems, Inc., a global manufacturer of water management products and solutions for commercial, residential, infrastructure and agricultural applications, today announced that it has acquired the assets of Plastic Tubing Industries (PTI), a manufacturer of HDPE pipe and related accessories, for $9.5 million. The transaction is expected to be accretive to ADS' net income and adjusted EBITDA in the first full year.
"We are very excited to announce the acquisition of the PTI assets, which further increases our customer base and capacity in the growing Southeast region of the United States," said Joe Chlapaty, Chairman and Chief Executive Officer. "PTI is a highly complementary business, carries a strong brand and has exceptional customer loyalty dating back more than 40 years. We welcome the PTI team to the ADS family."
With the acquisition, ADS will increase its manufacturing footprint in Georgia and Texas, while adding production capacity to the existing ADS manufacturing facilities in Florida, to better serve growing demand in the region. PTI had sales of approximately $11 million for the year ending December 31, 2016.
About Advanced Drainage Systems, Inc.
Advanced Drainage Systems (ADS) is the leading manufacturer of high performance thermoplastic corrugated pipe, providing a comprehensive suite of water management products and superior drainage solutions for use in the construction and infrastructure marketplace. Its innovative products are used across a broad range of end markets and applications, including non-residential, residential, agriculture and infrastructure applications. The Company has established a leading position in many of these end markets by leveraging its national sales and distribution platform, its overall product breadth and scale and its manufacturing excellence. Founded in 1966, the Company operates a global network of 63 manufacturing plants and 31 distribution centers.