American Securities said Wednesday that it has made a “significant” investment in Advanced Drainage Systems, of Hilliard, Ohio, which produces corrugated polyethylene pipe products. American Securities is a New York PE firm. Financial terms were not disclosed. Earlier this week, Berkshire Partners said it had sold ADS but didn’t identify the buyer.
American Securities LLC, a New York-based private equity firm, today announces that it has completed its significant investment in Advanced Drainage Systems, Inc. (ADS), the largest producer of corrugated polyethylene pipe products in the world. Based in Hilliard, Ohio, ADS is a 40-year-old, privately-held company serving the storm and waste water industry. Equity for the investment was provided by American Securities Partners V, L.P., a $2.3 billion private equity partnership. Barclays Capital acted as financial advisor to ADS.
Through 48 manufacturing plants and 22 distribution centers, ADS serves a variety of markets including sewers (storm and sanitary), mining, agriculture, turf and recreation, on-site septic, timber, residential and commercial drainage, landfill and waste disposal management, road and high drainage, retention/detention and green building. In addition to its flagship N-12® pipe, the company offers a complete line of fittings and other accessories. Today, more than 8.5 billion feet of ADS pipe are in service around the world.
In commenting on the transaction, David L. Horing, a managing director of American Securities, said, “We are delighted to begin our partnership with Joe Chlapaty and the employees of ADS who are large owners of the company. Advanced Drainage System’s leadership position in the corrugated HDPE pipe business serving the water management industry is consistent with our philosophy of investing in market-leading companies in stable demand industries.”
Joseph A. Chlapaty, Chief Executive Officer of ADS, said, “ADS has many exciting growth opportunities ahead, and we look forward to having American Securities as a value-added partner, particularly with its internal Resources Group team with professionals in key functional areas ready to assist us in building our business. We chose American Securities because we believe they are best able to help us achieve continued growth.”
About American Securities
Headquartered in New York with an office in Shanghai, American Securities LLC is a U.S. middle-market private equity firm that invests in market-leading companies in North America with annual revenues generally ranging between $100 million to $1 billion. Investments are funded from more than $6 billion of committed capital. The firm traces its roots to the family office founded in 1947 by William Rosenwald to invest and manage his share of his family’s Sears, Roebuck & Co. fortune. More information on American Securities LLC can be found at www.american-securities.com.