Investment Banking - Advanced Drainage Systems, Inc.

Transactions | Infrastructure/Environmental/Water

Client: Advanced Drainage Systems, Inc.
Industry: Infrastructure/Environmental/Water
Transaction Type: Common Stock Offering
Role: Co-Manager

  • Advanced Drainage Systems, Inc. (NYSE:WMS) (the “Company”) designs, manufactures, and markets thermoplastic corrugated pipes and related water management products, and drainage solutions for use in the underground construction and infrastructure marketplace in the United States and internationally. The Company was founded in 1966 and is headquartered in Hilliard, Ohio.
  • The Company also purchases and distributes construction fabrics and other geotextile products for soil stabilization, reinforcement, filtration, separation, erosion control, and sub-surface drainage, as well as drainage grates and other products. It offers its products for non-residential, residential, agriculture, and infrastructure applications through a network of 32 distribution centers in approximately 80 countries.
  • In August 2019, the Company announced the acquisition of Infiltrator Water Technologies, for a purchase price of approximately $1.08 billion.
  • Prior to the acquisition, WMS generated $1.4 billion in revenue and $237.1 million in adjusted EBITDA for the last twelve months ending June 30, 2019. The Company had 56 manufacturing facilities, 32 distribution facilities and 4,400 employees.
  • The public offering (the “Offering”) closed on September 5, 2019. In total, the Company issued 10,350,000 shares of its common stock, par value $0.01 per share, at a price to the public of $29.7 per share and generated gross proceeds of $307.91 million (including the shoe).
  • The Company intends to use the net proceeds from this Offering for the repayment of a portion of the outstanding borrowings under its existing senior secured credit facility, with the remaining proceeds (if any) being used for general corporate purposes. Such borrowings were incurred to finance the previously announced acquisition.
  • Boenning served as a co-manager in the offering.