Advanced Drainage Systems, Inc., a leading global manufacturer of water management products and solutions for commercial, residential, infrastructure and agricultural applications, announced that it has acquired Ideal Pipe of Canada, a manufacturer of HDPE pipe and related accessories for approximately $56.8 million Canadian dollars. Ideal Pipe had sales in Canadian dollars of approximately $43 million for the trailing 12 months, providing $7.8 million in EBITDA over the same period.
"We are very excited to announce the acquisition of Ideal Pipe, which further strengthens our position in Canada by increasing our size and scale in the market, as well as enhancing our manufacturing, marketing and distribution capabilities," said Joe Chlapaty, Chairman and Chief Executive Officer.
"Through the combination of our businesses, we will be able to pursue new and exciting opportunities in the Canadian market and offer our customers an unmatched breadth of water management products and solutions, as well as field sales/engineering experience. This puts us in a stronger competitive position as compared to manufacturers of concrete, steel and PVC pipe."
Chlapaty, continued, "Importantly, this acquisition also underscores our commitment to a balanced capital allocation strategy that is focused on investing in growth opportunities, both organically and through strategic acquisitions - as well as returning cash to our shareholders through a quarterly dividend".
With the acquisition, ADS will increase its Canadian manufacturing footprint from two to five facilities. Ideal Pipe has manufacturing facilities in Western Ontario, Eastern Ontario and Manitoba, adding to the existing ADS manufacturing facilities in Ontario and Quebec. The acquisition also extends the combined company's Canadian field sales and engineering staff, which will enable ADS to leverage its extensive product and solution set, including its Allied Products line, through Ideal Pipe's sales and distribution network.