ADS Takes Operational Control of BaySaver Joint Venture
Company interest increases to 65% and will begin consolidating financial results of the joint venture
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
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