HILLIARD, Ohio--(BUSINESS WIRE)--Advanced Drainage Systems, Inc. (“ADS”) (NYSE:WMS), a leading global manufacturer of water management products and solutions for commercial, residential, infrastructure and agricultural applications, today announced that it has acquired operational control of its BaySaver, LLC joint venture from its partner, BaySaver Technologies, Inc. (“BTI.”) Under its BaySeparator and BayFilter brands, “BaySaver” manufactures stormwater treatment units used in construction applications to remove sediments and other pollutants from stormwater runoff.
Through this transaction, ADS has acquired an additional 10% from BTI for $3.2 million, bringing its interest in the joint venture to 65%. The joint venture was initially formed on July 15, 2013. The partnership combined the industry leading engineering, manufacturing, sales and distribution of ADS, with the research, development and technical approvals of BTI. During the twelve months ended March 31, 2015, BaySaver had revenue of approximately $11.0 million. BaySaver will continue to be based in Mount Airy, Maryland with a focus on stormwater filtration and separation technologies.
“We are very excited about advancing this partnership and the future prospects of the BaySaver product line,” said Joe Chlapaty, Chairman and Chief Executive Officer. “We believe there are strong growth opportunities, both in the near and long-term in this growing application. Evolving requirements related to stormwater management have created the demand for a more complete treatment methodology and this strategic partnership has strengthened our position as the only complete solutions provider for water management systems.”
Mr. Chlapaty continued, “As we move forward, we will continue to leverage the abilities of both ADS and BaySaver to develop and bring to market the latest stormwater treatment products. This transaction shows our commitment to our strategy of allocating capital to invest in growth opportunities, whether organically or through acquisitions, that will further our industry leading position.”
As a result of the transaction, ADS will consolidate BaySaver for financial reporting purposes effective as of the July 17, 2015 closing date.
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 61 manufacturing plants and 29 distribution centers.
Forward Looking Statements
Certain statements in this press release may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are not historical facts but rather are based on the Company’s current expectations, estimates and projections regarding the Company’s business, operations and other factors relating thereto. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “confident” and similar expressions are used to identify these forward-looking statements. Factors that could cause actual results to differ from those reflected in forward-looking statements relating to our operations and business include: fluctuations in the price and availability of resins and other raw materials and our ability to pass any increased costs of raw materials on to our customers in a timely manner; volatility in general business and economic conditions in the markets in which we operate, including, without limitation, factors relating to availability of credit, interest rates, fluctuations in capital and business and consumer confidence; cyclicality and seasonality of the non-residential and residential construction markets and infrastructure spending; the risks of increasing competition in our existing and future markets, including competition from both manufacturers of high performance thermoplastic corrugated pipe and manufacturers of products using alternative materials; our ability to continue to convert current demand for concrete, steel and PVC pipe products into demand for our high performance thermoplastic corrugated pipe and Allied Products; the effect of weather or seasonality; the loss of any of our significant customers; the risks of doing business internationally; the risks of conducting a portion of our operations through joint ventures; our ability to expand into new geographic or product markets; our ability to achieve the acquisition component of our growth strategy; the risk associated with manufacturing processes; our ability to manage our assets; the risks associated with our product warranties; our ability to manage our supply purchasing and customer credit policies; the risks associated with our self-insured programs; our ability to control labor costs and to attract, train and retain highly-qualified employees and key personnel; our ability to protect our intellectual property rights; changes in laws and regulations, including environmental laws and regulations; our ability to project product mix; the risks associated with our current levels of indebtedness; our ability to meet future capital requirements and fund our liquidity needs; and the other risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission. New risks and uncertainties emerge from time to time and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company’s expectations, objectives or plans will be achieved in the timeframe anticipated or at all. Investors are cautioned not to place undue reliance on the Company’s forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.