ADS subsidiary to acquire wastewater treatment product manufacturer

Advanced Drainage Systems Inc (ADS)., Hilliard, Ohio, has signed a definitive agreement pursuant to which its wholly owned subsidiary, Infiltrator Water Technologies, will acquire Orenco Systems Inc., a manufacturer of advanced on-site septic wastewater treatment products based in Sutherlin, Oregon, that serves residential and nonresidential end markets.

The parties expect the transaction to close in the third quarter of ADS' 2025 fiscal year, subject to customary closing conditions.

On its website, Orenco says it 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 distribution points worldwide.

RELATED: ADS issues FY24 sustainability report

“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,” ADS President and CEO Scott Barbour says. “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.”

According to ADS, the acquisition brings numerous benefits:

• ADS says this transaction establishes a “premier provider” of residential and nonresidential advanced wastewater treatment systems and expands sales in a fragmented segment driven by regulatory tailwinds.
• Bringing the two companies together creates significant opportunity to accelerate engineering and product development in an evolving market.
• ADS says collaboration will produce a scalable opportunity for efficiency with an Infiltrator team that has a “proven track record of margin expansion.”
• 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.
• The transaction brings together two companies committed to safety, operational excellence and sustainability and to creating water management solutions that preserve water.

Jefferies LLC acted as the exclusive financial advisor and Squire Patton Boggs LLP acted as the legal advisor to ADS. Raymond James acted as the financial advisor and Klehr Harrison Harvey Branzburg LLP served as the legal advisor to Orenco.