The Canada Pension Plan Investment Board is buying $450 million shares in an American drainage system provider.

Following the investment, the pension fund controls about 4.6 per cent of the Ohio-based Advanced Drainage Systems Inc.’s total equity.

ADS, which provides water management solutions to the industrial and agricultural sectors, operates a network of 60 manufacturing plants and 30 distribution centres. According to the CPPIB, it’s also North America’s second largest processor of recycled plastics, responsible for the recirculation of more than 225,000 metric tonnes of plastic per year.

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In a press release, Michael Koen, managing director and head of relationship investments at the CPPIB, said the decision was made due to the ADS’s strong performance and strategic market position.

“ADS represents the opportunity to invest in a high-quality operator that is a leader in its field. The company’s strong competitive positioning and runway for growth make it a good fit for our investment strategy.”

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