NORMA Group sells Water Management business to ADS

NORMA Group today 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.

CEO Mark Wilhelms: “The agreement represents a significant milestone in NORMA Group’s transformation into a focused industrial supplier. Once the transaction has been completed, we will eliminate our net debt, putting the company on even more sound financial footing and providing us with greater flexibility to expand our industrial business. We will now focus all our energy on consistently strengthening our core business of advanced joining technology in the two complementary business units Industry Applications and Mobility & New Energy.”

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.

Mark Wilhelms: “The water management business has developed very successfully over the past ten years under our ownership and delivered significant revenue and profitability growth thanks to the dedication of our employees in America, Asia and Europe. We would like to express our sincere gratitude to its management team and all our Water Management employees as well as to our business partners for the longstanding cooperation. We are convinced that ADS represents a very good home for the business.”

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. After the completion of the sale, the Management Board and Supervisory Board will consult on the final use of the proceeds.

NORMA Group announced at the end of 2024 that it intended to sell the Water Management business unit and focus on its inherent core business. The sale is part of NORMA Group’s transformation into a focused industrial supplier, which is expected to be completed by 2028. The transformation consists of three building blocks: The growth plans in the Industry Applications business unit will be brought forward, administrative costs will be reduced and site capacities optimized. The objective of the transformation is to strengthen NORMA Group’s core business with advanced joining technology and to position the company for sustainably profitable growth. The Water Management business unit will be classified as a “discontinued operation” with effect from September 30, 2025. Consequently, NORMA Groups updates its forecast for full-year 2025 in relation to continuing operations:

• The Management Board expects Group sales from continuing operations to be in the range of around EUR 810 million to around EUR 830 million (previously including Water Management: “of around EUR 1.1 billion to around EUR 1.2 billion”).

• For the adjusted EBIT margin from continuing operations, the Management Board anticipates a figure of around 0 percent to around 1 percent (previously including Water Management: “of around 6 percent to around 8 percent”).

NORMA Group aims to significantly increase profitability in the course of its ongoing transformation program 2025 to 2028.