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Highlights

  • Transaction valued at USD 1.0b, adjusted to USD 875m with tax benefits.
  • ADS expects over USD 25m in annual cost synergies within three years.
  • NDS generated USD 313m revenue in trailing twelve months ended June 2025.

Advanced Drainage Systems, Inc. (NYSE:WMS) announced it has entered into a definitive stock purchase agreement to acquire National Diversified Sales, the water management business of Norma Group SE (DAX:NOEJ), in an all-cash transaction valued at approximately USD 1.0 billion, or about USD 875 million when adjusted for the present value of expected tax benefits.

The acquisition expands ADS’ product offerings and distribution reach by adding NDS’ expertise in residential water management, access boxes, and irrigation to its portfolio. The combination is intended to broaden ADS’ total addressable market while enhancing its position across both retail and distributor channels.

NDS generated USD 313m in revenue in the trailing twelve months ended June 2025, with approximately 90% of its sales in the U.S. The transaction value, net of estimated tax benefits, represents a multiple of ~10x NDS Adjusted EBITDA, inclusive of expected run-rate cost synergies. ADS anticipates the acquisition will be accretive to adjusted earnings per share in the first year.

The company expects to unlock over USD 25m in annual cost synergies within three years, supported by integration efficiencies and operational discipline. Additional revenue synergies may arise from cross-selling products and expanded market opportunities.

Transaction Details

The acquisition will be funded through ADS’ cash on hand and available credit facilities. The Boards of Directors of both companies have unanimously approved the agreement, which remains subject to customary closing conditions, including regulatory approvals. The transaction is expected to close in the first quarter of 2026.

Centerview Partners LLC and Jefferies LLC served as financial advisors, while Davis Polk & Wardwell LLP, Squire Patton Boggs (U.S.) LLP, and Hengeler Mueller provided legal counsel to ADS.