Advanced Drainage Systems acquires BaySaver joint venture (additional 10% interest, from BaySaver Technologies, Inc.)

Advanced Drainage Systems acquired BaySaver joint venture (additional 10% interest, from BaySaver Technologies, Inc.) for $3.2 million for the additional 10% interest, a transaction completed in July 2015, structured as all cash. The deal was a Increase in joint-venture ownership (majority stake).

BaySaver joint venture (additional 10% interest, from BaySaver Technologies, Inc.) operates in Stormwater (water-quality treatment), is based in Mount Airy, Maryland, USA, had revenue of about approximately $11.0 million (twelve months ended March 31, 2015). ADS (through subsidiary ADS Ventures, Inc.) acquired an additional 10% interest in its BaySaver, LLC joint venture from partner BaySaver Technologies, Inc., raising ADS's ownership to 65% and giving it operational control and majority voting rights. Under the BaySeparator and BayFilter brands, BaySaver makes stormwater treatment units that remove sediment and pollutants from construction-site runoff. The JV, based in Mount Airy, Maryland, was originally formed in July 2013; following the transaction ADS began consolidating BaySaver's results.

Advances ADS's water-quality strategy and strengthens its position as a complete water-management solutions provider as stormwater regulations create demand for fuller treatment methodologies.

consolidated as a 65%-owned subsidiary (ADS Ventures, Inc.)

We are very excited about advancing this partnership and the future prospects of the BaySaver product line. We believe there are strong growth opportunities, both in the near and long-term in this growing application.Joe Chlapaty, Chairman and Chief Executive Officer, Advanced Drainage Systems

Advisory firms were not disclosed for this transaction.

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