Advanced Drainage Systems Announces Acquisition Of Advanced Wastewater Treatment Leader Orenco Systems, Inc.
- Enhances ADS’ position as a leader in water management solutions
- Expands offering and footprint in the highly attractive advanced wastewater treatment industry
- Aligns with core growth strategies and commitment to innovation
HILLIARD, Ohio – (August 20, 2024) – Advanced Drainage Systems, Inc. (NYSE: WMS) (“ADS” or the “Company”), a leading provider of innovative water management solutions in the stormwater and onsite septic wastewater industries, today announced the signing of a definitive agreement pursuant to which the Company’s wholly-owned subsidiary, Infiltrator Water Technologies (“Infiltrator”), will acquire Orenco Systems, Inc. (“Orenco”), a leading manufacturer of advanced onsite septic wastewater treatment products serving residential and non-residential end markets. The parties expect the transaction to close in the Company’s third quarter of fiscal 2025, subject to customary closing conditions.
“Orenco accelerates the Company’s growth in the advanced wastewater treatment space, opening up new opportunities in a highly fragmented and fast-growing segment of onsite septic wastewater,” said Scott Barbour, President and Chief Executive Officer. “This acquisition is a great strategic fit for the Infiltrator business. The enhanced portfolio of complementary solutions combined with the broader sales force, geographic reach and distribution footprint will drive further penetration in this attractive segment. We look forward to working with the Orenco team to continue building on both companies’ strengths to deliver exceptional products and services to customers.”
Combination Benefits
- Leadership – This transaction establishes a premier provider of residential and non-residential advanced wastewater treatment systems and expands sales in a fragmented segment driven by regulatory tailwinds.
- Innovation – By bringing together two industry leaders, there is significant opportunity to accelerate engineering and product development in an evolving market.
- Synergies – Collaboration on operational excellence will produce a scalable opportunity for efficiency, with an Infiltrator team that has a proven track record of margin expansion.
- Scale – The combined sales and engineering teams of Infiltrator and Orenco, as well as the combined operational footprint and distribution network, provide enhanced scale to further penetrate a growing segment.
- Environmental Stewardship – This transaction brings together two companies committed to creating innovative water management solutions that preserve water, the world’s most precious resource, with a shared commitment to safety, operational excellence and sustainability.
Transaction Details
Jefferies LLC acted as the exclusive financial advisor and Squire Patton Boggs LLP acted as legal advisor to ADS. Raymond James acted as financial advisor and Klehr Harrison Harvey Branzburg LLP acted as legal advisor to Orenco.
About Advanced Drainage Systems
Advanced Drainage Systems is a leading manufacturer of innovative stormwater and onsite septic wastewater solutions that manages the world’s most precious resource: water. ADS and its subsidiary, Infiltrator Water Technologies, provide superior stormwater drainage and onsite septic wastewater products used in a wide variety of markets and applications including commercial, residential, infrastructure and agriculture, while delivering unparalleled customer service. ADS manages the industry’s largest company-owned fleet, an expansive sales team, and a vast manufacturing network of approximately 70 manufacturing plants and 40 distribution centers. The Company is one of the largest plastic recycling companies in North America, ensuring over half a billion pounds of plastic is kept out of landfills every year. Founded in 1966, ADS’ water management solutions are designed to last for decades. To learn more, visit the Company’s website at www.adspipe.com.
About Orenco
Orenco is a leading manufacturer of advanced wastewater treatment products serving residential, commercial and municipal end markets. Since 1981, Orenco Systems, Inc. has designed and manufactured innovative onsite and decentralized wastewater collection and treatment technologies. Orenco solutions include community collection systems, advanced treatment systems, watertight fiberglass tanks, and in-tank pumping and filtration systems. Orenco also manufactures OEM controls, as well as state-of-the-art fiberglass buildings, tanks, and enclosures.
Forward Looking Statements
Certain statements in this press release may be deemed to be forward-looking statements. 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; disruption or volatility in general business and economic conditions in the markets in which we operate; 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; uncertainties surrounding the integration and realization of anticipated benefits of acquisitions; 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; the risk associated with manufacturing processes; the effect of global climate change; our ability to protect against cybersecurity incidents and disruptions or failures of our IT systems; our ability to assess and monitor the effects of artificial intelligence, machine learning, and robotics on our business and operations; our ability to manage our supply purchasing and customer credit policies; 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 appropriately address any environmental, social or governance concerns that may arise from our activities; the risks associated with our current levels of indebtedness, including borrowings under our existing credit agreement and outstanding indebtedness under our existing senior notes; and other risks and uncertainties described in the Company’s filings with the SEC. 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.
For more information, please contact:
Michael Higgins VP, Corporate Strategy & Investor Relations (614) 658-0050 Michael.Higgins@adspipe.com
News Release
Orenco Celebrates 40th Anniversary, Makes Organizational Changes
SUTHERLIN, ORE., February 2, 2021 — Orenco Systems, Inc., is celebrating four decades of protecting the world’s water. As part of reaching this milestone, the company is making some significant changes that better reflect its plans for the future.
After 40 years, founder Hal Ball has announced his retirement from day-to-day involvement in the company. Co-founder and former executive vice president Terry Bounds will serve as both chairman of Orenco’s board of directors and president over the research and development, operation and maintenance, and facilities departments of the company.
“It feels pretty amazing to have achieved this milestone,” says Bounds, “and we couldn’t have done it without the support of everyone we’ve worked with over the past four decades, both inside and outside Orenco.” He adds, “We’re also incredibly excited to continue developing innovative, science-based solutions to protect the world’s water for decades to come.”
Orenco is also instituting some organizational changes in this anniversary year. The company will now operate in three distinct divisions to provide more focused service. Jeff Ball will serve as president of Orenco Water, while Eric Ball has been named president of Orenco Composites. Travis Wood, former president of Franklin Control Systems, is the new president of Orenco Controls. And former legal counsel Scott Saulls will serve as Corporate President.
As mentioned above, Orenco’s wastewater-focused operations will now be known as the Orenco Water division. The company’s founders have always believed in the “One Water” approach to water conservation and management, and the Orenco slogan is “Protecting the World’s Water.” Jeff Ball says, “We see water as our most valuable resource, no matter where it appears in the water cycle.”
Based in Sutherlin, Oregon, Orenco Systems has been designing and manufacturing energy-efficient water and wastewater products, large-scale composite structures, and controls products since 1981. The company employs about 400 people and has more than 300 points of distribution worldwide. For more information, visit orenco.com.
News Release
Septic-to-Sewer Conversion Helps Clean Up a Florida Community
SUTHERLIN, ORE., October 7, 2016 — For the second year in a row, an Orenco® Systems’ wastewater installation has received a “Top Projects” award from Water & Wastes Digest magazine. Winners of this coveted award are selected based on the challenges presented by their projects and how they met those challenges.
This year’s award-winning project is located in Vero Beach, Florida, a densely populated city adjacent to the Indian River Lagoon on Florida’s east coast. Many of the city’s on-lot septic tanks and drainfields were failing, and experts believed that nitrogen, phosphorus, and bacteria from these systems were contributing to the pollution of the watershed. To address these concerns, approximately 1,500 septic systems are now being replaced with an Orenco Sewer™ system.
Darren Paschke, a Project Manager in Orenco’s Municipal Systems group, coordinated the project. “We are excited to be recognized again this year by Water & Wastes Digest,” says Paschke. “The engineer in Vero Beach did his homework and, after analyzing several types of wastewater collection, determined that Orenco Sewer was the most cost-effective solution.”
Robert J. Bolton, P.E., is the Director of Water and Sewer for Vero Beach. While researching various sewer options, he contacted other cities that had already installed Orenco Sewer. He found they were able to maintain their systems with minimal staffing and negligible maintenance issues. “At this point,” says Bolton, “I determined that Orenco products led the industry.” And, according to Bolton’s calculations, the cost of installing an Orenco Sewer was less than half of what it would have cost to expand the city’s gravity sewer system.
Orenco Sewers use underground tanks at each home to collect wastewater solids, with pump-outs needed only 7-10 years, depending on occupancy.i The liquid waste is pumped to a treatment facility. Energy requirements, operation and maintenance needs, and life-cycle costs for the system are all typically much less than those for a traditional gravity sewer system.ii
i Orenco Systems, internal tests, based on a 95% level of confidence.
ii Water Environment & Reuse Foundation, Decentralized Systems Performance and Costs Fact Sheets, www.werf.org/i/c/DecentralizedCost/Decentralized_Cost.aspx