Norma Group

NORMA Group to acquire specialised water management company National Diversified Sales in the USA

Maintal, Germany/Woodland Hills, USA, 8 October 2014 – NORMA Group SE (“NORMA Group”), a global market leader in engineered joining technology, signed an agreement to acquire all shares in National Diversified Sales, Inc. (“NDS”) on 8 October 2014. By acquiring NDS, one of the leading US suppliers of stormwater management, landscape irrigation and connecting flow management components for water infrastructure, NORMA Group is continuing its expansion course in the area of water management. NDS is owned by a fund managed by Graham Partners, a US based private equity firm focused on middle market advanced manufacturing and industrial technology companies. The purchase price amounts to USD 285 million. The acquisition is subject to the approval of the relevant anti-trust authorities and expected to be completed before the end of this year. Both parties have agreed not to disclose any further details on the transaction at this time.

Following the acquisitions that NORMA Group has made in Malaysia and Australia since 2012, the purchase of NDS represents another important step toward expanding its global position in the area of water management. “In light of the global scarcity of water, there is a growing need for efficient solutions for the water supply and infrastructure,” said Werner Deggim, CEO of NORMA Group. “By acquiring NDS, we expand our product portfolio and geographic presence to respond to this trend. We will leverage NDS’s vast know-how to diversify our business activities and enter into new markets by offering its technologically differentiated products.

NDS has its headquarters in Woodland Hills, California, located just north of Los Angeles. The company has been operating its business for over 40 years and has more than 500 employees at two production sites and six warehouses. NDS manufactures and sells water management systems that collect and drain stormwater, irrigation solutions including drip irrigation; as well as joining products for use in flow management applications. The product portfolio comprises drainage products including valve boxes, catch basins, channel drains and subsurface drains; as well as automated drip irrigation systems and connecting fittings and valves. NDS offers more than 5,000 products in total, which the company sells via more than 7,700 retail and wholesale customer locations in the USA. NDS had sales of approximately USD 127.6 million (approximately EUR 96 million) in financial year 2013.

The Helaba Landesbank Hessen-Thüringen (bookrunner) and Landesbank Baden-Württemberg will be providing bridge loans for the purchase of NDS.

NORMA Group to acquire specialised water management company National Diversified Sales in the USA.pdf