Advanced Drainage to acquire water management business of Norma Group for $1B

Advanced Drainage (WMS) announced that it has entered into a definitive stock purchase agreement under which ADS will acquire the water management business of Norma Group, known as National Diversified Sales, in an all-cash transaction valued at approximately $1B, or approximately $875M when adjusted for the present value of the expected tax benefits. NDS generated $313M in revenue over the trailing twelve months ended June, with approximately 90% of sales in the U.S. The acquisition is expected to be accretive to adjusted EPS in the first year. The transaction value, net of estimated tax benefits, represents a multiple of approximately 10x NDS adjusted EBITDA from trailing twelve months ended June, inclusive of expected run-rate cost synergies. 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.