Nav

thought-leadership Growth and Innovation

September 23, 2025 / 5 minute read

Advanced Drainage Systems Announces Acquisition of National Diversified Sales, a Subsidiary of Norma Group Se

• Adds Complementary New Offerings in Attractive Allied Products

• Enhances Go-to-Market Capabilities in retail and distributor channels

• Expands Addressable Market with Complementary Product Portfolio and Segments

• Unlocks Significant Value Creation Potential with Over $25 Million in Expected Annual Cost Synergies

HILLIARD, Ohio – (September 23, 2025) – Advanced Drainage Systems, Inc. (NYSE: WMS) (“ADS” or the “Company”), a leading provider of innovative water management solutions in the stormwater and onsite wastewater industries today announced that it has entered into a definitive stock purchase agreement under which ADS will acquire the water management business of Norma Group SE (DAX: NOEJ), known as National Diversified Sales (“NDS”), in an all-cash transaction valued at approximately $1.0 billion, or approximately $875 million when adjusted for the present value of the expected tax benefits.

This combination brings together complementary water management solutions to expand ADS’ offering in new segments. By adding NDS’ expertise in residential water management solutions, access boxes and irrigation to its product portfolio, ADS further enhances its capabilities as a comprehensive provider of full-scale water management solutions. Importantly, the transaction aligns with ADS’ core growth strategies and accelerates momentum within Allied Products by introducing new solutions to the product portfolio, broadening customer reach, and enhancing distribution capabilities.

NDS brings a strong financial foundation to the combination, having generated $313 million in revenue over the trailing twelve months ended June 2025, with approximately 90% of sales in the U.S. The acquisition is expected to be accretive to adjusted EPS in the first year, supported by ADS’ proven integration capabilities and operational discipline. The transaction value, net of estimated tax benefits, represents a multiple of ~10x NDS Adjusted EBITDA from trailing twelve months ended June 2025, inclusive of expected run-rate cost synergies.

“ADS continues to evolve from a pipe manufacturing company to an enterprise providing a wide range of stormwater and onsite wastewater solutions, with leading manufacturing, logistics and design services,” said Scott Barbour, Chief Executive Officer and President of ADS. “The acquisition of NDS marks another important milestone in ADS’ journey as it accelerates our strategy to diversify and increase the mix of highly profitable Allied and Infiltrator products that enhance resiliency, supports profitable growth, and allows ADS to pursue water management projects across a broader set of applications. NDS is a leader across its product categories and is highly complementary to ADS’solutions and go-to-market strategies.”

Mr. Barbour continued, “Our disciplined capital allocation framework and strong balance sheet provide us the flexibility to act when opportunities like this arise, while continuing to invest in our business and return capital to shareholders. Through our investment in NDS and applying ADS’ proven operating model and integration expertise, we expect to drive enhanced profitability and realize significant synergies as a combined entity. The combination of NDS’ well-regarded brand and product portfolio in residential stormwater and irrigation with ADS’ complementary capabilities, operating discipline, and customer reach, will enhance the solutions we deliver to our customers. With a proven track record of creating value through strategic acquisitions, we are confident this combination will increase our exposure to markets with powerful secular tailwinds, where the need to manage and protect water – our most precious resource – continues to grow, safeguarding both communities and the environment.”

Transaction Benefits

Adds Complementary New Offerings in Attractive Allied Products Segment

  • Highly complementary product solutions in water capture.
  • Supplementary distribution approaches, enhancing a broad set of solutions for residential, non-residential, turf and irrigation applications.

Enhances Go-to-Market Capabilities in both Retail and Distributor Channels

  • Improves relationships with retailers, turf and irrigation and waterworks distributors in existing customer segments.
  • Enhances multi-channel strategy with NDS’ established e-commerce platform and direct-to-consumer sales.
  • Adds complementary manufacturing and distribution footprint across North America, with significant capacity for growth.

Expands Addressable Market with Complementary Product Portfolio and Segments

  • Broadens total addressable market by entering the $1.5B landscape irrigation segment.
  • Increases exposure to the Residential Repair & Remodel segment, providing greater resiliency across economic cycles.

Unlocks Significant Value Creation Potential with Over $25 Million in Expected Annual Cost Synergies

  • Proven integration expertise will drive operational efficiency, margin improvement, and enhanced customer value.
  • Additional upside from revenue synergies through cross-selling products and expanded market opportunities.
  • Synergies expected to be fully realized within three years.

Transaction Details

The transaction will be funded by cash on hand and existing credit line capacity at ADS. The Boards of Directors of both companies have unanimously approved the transaction, which is subject to customary closing conditions, including the receipt of required regulatory approvals. The transaction is expected to close in the first quarter of 2026.

Advisors

Centerview Partners LLC and Jefferies LLC acted as financial advisors and Davis Polk & Wardwell LLP, Squire Patton Boggs (U.S.) LLP and Hengeler Mueller acted as legal advisors to the Company.

Conference Call

ADS will discuss the proposed acquisition during a webcast at 9:00 a.m. Eastern Time today, September 23, 2025.

Webcast: Interested investors and other parties can listen to a webcast of the live conference call by logging in through the Investor Relations section of the Company's website at https://investors.ads-pipe.com/events-and-presentations. An online replay will be available on the same website following the call.

Teleconference: To participate in the live teleconference, participants may register at https://registrations.events/direct/Q4I4578625. After registering, participants will receive a confirmation through email, including dial in details and unique conference call codes for entry. Registration is open through the live call. To ensure participants are connected for the full call, please register at least 10 minutes before the start of the call.