Advanced Drainage Systems acquired Ideal Pipe (Ideal Drain Tile Limited and Wave Plastics Inc.) for approximately CAD $56.8 million (press release); contractual purchase price of CAD $55.7 million per the FY2016 Form 10-K, a transaction completed in January 2015, structured as all cash (financed through existing line of credit).
Ideal Pipe (Ideal Drain Tile Limited and Wave Plastics Inc.) operates in International (Canada), is based in Ontario and Manitoba, Canada, had revenue of about approximately CAD $43 million in trailing-twelve-month sales; approximately CAD $7.8 million EBITDA. Through its wholly-owned subsidiary Hancor of Canada, Inc., ADS acquired all of the issued and outstanding shares of Ideal Drain Tile Limited and Wave Plastics Inc., the two partners of Ideal Pipe, a Canadian manufacturer of high-performance thermoplastic corrugated (HDPE) pipe and related water-management accessories. The deal added three Ontario and Manitoba plants, taking ADS's Canadian manufacturing footprint from two facilities to five.
Strengthens ADS's position in the Canadian market by increasing size and scale and enhancing manufacturing, marketing and distribution capabilities, improving its competitive position against concrete, steel and PVC pipe.
International segment (Hancor of Canada)
We are very excited to announce the acquisition of Ideal Pipe, which further strengthens our position in Canada by increasing our size and scale in the market, as well as enhancing our manufacturing, marketing and distribution capabilities.Joe Chlapaty, Chairman and Chief Executive Officer, Advanced Drainage Systems
Advisory firms were not disclosed for this transaction.