NORMA Group signed an agreement to sell its Water Management business unit to Advanced Drainage Systems, Inc. (“ADS”). The enterprise value of the transaction is USD 1.0 billion. The transaction is subject to customary regulatory approvals and is expected to close in the first quarter of 2026.
The Water Management business unit consists of several subsidiaries with a total of six plants in the USA, Mexico, India, Malaysia and Italy as well as additional sales and distribution locations. The business unit’s workforce comprises around 1,100 employees, primarily in America and Asia. Water Management develops, produces and sells irrigation systems, products for rainwater management and connection components for water infrastructure. In 2024, the Water Management business unit generated sales of around EUR 300 million (around USD 320 million), corresponding to a quarter of the Group’s sales of around EUR 1.2 billion.
Founded in 1966 and headquartered in Hilliard, Ohio, ADS is a leading manufacturer of innovative stormwater and onsite wastewater solutions. The company is listed on the New York Stock Exchange.
According to initial calculations, NORMA Group expects a net cash inflow of around EUR 620 million to around EUR 640 million from a successful closing. This total is based on proceeds upon completion of the agreement which are subject to the usual purchase price adjustment mechanisms as of the reporting date and is net of taxes and transaction costs. The proceeds from the sale are to be used to reduce debt by around EUR 300 million. The company expects to reserve up to EUR 70 million for value-accretive acquisitions to expand the Industry Applications business unit. The Management Board plans to return the remaining portion of the net cash inflow to shareholders, potentially in a first step through a share buyback program.
