Core Viewpoint - The company is discussing the proposed acquisition of National Diversified Sales (NDS) from NORMA Group SE, indicating a strategic move to enhance its market position and capabilities [2]. Group 1: Proposed Acquisition - The acquisition of NDS is presented as a significant opportunity for the company, with key executives involved in the discussion [2]. - The transaction is expected to strengthen the company's portfolio and expand its operational capabilities [2]. Group 2: Forward-Looking Statements - The company has issued a reminder regarding forward-looking statements, emphasizing that actual results may differ due to various factors [3]. - There is a disclaimer about the obligation to update forward-looking statements in the future, highlighting the uncertainty inherent in such projections [3][4].

Core Viewpoint - The company is proposing to acquire National Diversified Sales (NDS) from NORMA Group SE, indicating a strategic move to enhance its market position and product offerings [2]. Group 1: Proposed Acquisition - The acquisition of NDS is aimed at expanding the company's capabilities and market reach [2]. - The transaction involves key executives, including the President and CEO, and the Chief Financial Officer, highlighting the importance of this deal to the company's leadership [2]. Group 2: Communication and Transparency - The company emphasizes the potential for forward-looking statements during the call, acknowledging that actual results may differ due to various factors [3]. - A press release regarding the acquisition has been issued and is available on the company's Investor Relations website, ensuring transparency and accessibility of information [4].

Summary of Advanced Drainage Systems Conference Call Company Overview - **Company**: Advanced Drainage Systems (NYSE: WMS) - **Acquisition Target**: National Diversified Sales (NDS), a leader in residential stormwater and irrigation access boxes - **Transaction Value**: $1 billion in an all-cash transaction [3][12] Key Points of the Acquisition - **Strategic Fit**: The acquisition is seen as highly complementary to Advanced Drainage Systems' water management strategy, enhancing exposure to the residential segment and resilient applications such as residential repair and landscape irrigation [4][10] - **Financial Metrics**: The acquisition represents a valuation multiple of approximately 10 times NDS' adjusted EBITDA from the trailing 12 months ended June 30, 2025, inclusive of expected run-rate cost synergies [3][13] - **Expected Synergies**: Advanced Drainage Systems anticipates $25 million in annual cost synergies by year three post-acquisition [4][11] Growth and Diversification Strategy - **Historical Context**: In 2016, nearly 75% of Advanced Drainage Systems' revenue came from the pipe segment. The company has since diversified its product portfolio and geographic mix, aiming for higher-margin, more profitable business segments [6][10] - **Impact of Previous Acquisitions**: The acquisition of Infiltrator in 2019 significantly contributed to this diversification, doubling annual sales with a 17% sales growth CAGR [8] - **Future Projections**: Post-acquisition, approximately 50% of company revenues will come from higher growth and more profitable allied products and Infiltrator segments [6] Market Position and Opportunities - **Market Reach**: NDS generates nearly 90% of its sales in the United States, primarily operating in North America, and is recognized for its expertise in small-scale drain basins and irrigation solutions [5][10] - **Addressable Market**: The acquisition allows Advanced Drainage Systems to tap into the $1.5 billion landscape irrigation market, enhancing cross-selling opportunities and expanding its product offerings [10] Financial Outlook - **Pro Forma Revenue**: The combined entity is expected to have pro forma revenue exceeding $3 billion with an adjusted EBITDA margin of approximately 31% [11] - **Debt Management**: The acquisition will be funded through cash on hand and existing revolving credit facilities, with pro forma net debt expected to be 1.6 times at closing, within the targeted leverage range [12] Conclusion - **Integration Confidence**: Advanced Drainage Systems expresses confidence in its ability to integrate NDS effectively, leveraging proven integration capabilities to drive growth and profitability [14] - **Future Updates**: The transaction is expected to close in the first calendar quarter of 2026, pending regulatory approvals [14]

Core Viewpoint - Advanced Drainage Systems, Inc. has signed a definitive agreement to acquire the water management unit of Norma Group SE, known as National Diversified Sales (NDS), for approximately $1 billion in cash, with a net purchase price of about $875 million after tax benefits [1][5]. Group 1: Acquisition Details - The acquisition is unanimously approved by both boards and aims to expand Advanced Drainage Systems' presence in stormwater, onsite wastewater, and irrigation markets [2][3]. - NDS generated $313 million in revenue over the 12 months ending June 2025, with nearly 90% of sales occurring in the U.S. [4]. - The purchase price reflects about 10 times NDS's adjusted EBITDA for the same period, including expected cost synergies [5]. Group 2: Financial Impact - Advanced Drainage Systems projects that the deal will contribute to adjusted EPS within the first year, supported by anticipated savings of more than $25 million annually, fully realized within three years [5]. - As of June 30, 2025, Advanced Drainage Systems had cash worth $638.27 million, with net long-term debt obligations of $1.25 billion at the end of the first quarter of fiscal 2026 [2]. Group 3: Strategic Implications - The acquisition diversifies Advanced Drainage Systems' offerings and supports growth across multiple end markets, including entry into the $1.5 billion landscape irrigation sector [6]. - The combination of Advanced Drainage Systems' operational expertise with NDS's established brand is expected to strengthen the firm's ability to capture long-term opportunities [7].

Group 1 - The article does not provide any specific information or data regarding companies or industries [1]

Transaction Overview - ADS will acquire National Diversified Sales (NDS) for approximately $1 billion, or $875 million when adjusted for expected tax benefits[9] - The transaction value represents a multiple of 10x NDS Adjusted EBITDA from TTM ended June 2025, inclusive of expected run-rate cost synergies[9] - Approximately $25 million of annual cost synergies are expected to be realized by year 3[9, 35] - The transaction is expected to close in the first quarter of CY2026[9] NDS Overview - NDS is a leading U S supplier of residential stormwater management, landscape irrigation and connecting flow management components for water infrastructure[10] - Landscape Irrigation accounts for approximately 30% of NDS' business mix, while Flow Management accounts for approximately 15%[12] - The Americas account for 90% of NDS' geographic revenue[12] Financial Impact - Pro forma net sales including $25 million cost synergies is approximately $3 2 billion[34] - Pro forma adjusted EBITDA including $25 million cost synergies is approximately $980 million[34] - Pro forma adjusted EBITDA margin including $25 million cost synergies is approximately 31%[34]

Core Viewpoint - NORMA Group has signed an agreement to sell its Water Management business unit to Advanced Drainage Systems, Inc. for an enterprise value of USD 1.0 billion, marking a significant step in the company's transformation into a focused industrial supplier [3][4][8]. Transaction Details - The transaction is expected to close in the first quarter of 2026, pending regulatory approvals [3]. - NORMA Group anticipates a net cash inflow of approximately EUR 620 million to EUR 640 million from the sale, which will be used to reduce debt by around EUR 300 million and reserve up to EUR 70 million for acquisitions [6][8]. Business Unit Overview - The Water Management business unit includes six plants across the USA, Mexico, India, Malaysia, and Italy, employing around 1,100 people [4]. - In 2024, this unit generated sales of approximately EUR 300 million (around USD 320 million), accounting for about 25% of NORMA Group's total sales of EUR 1.2 billion [4][8]. Strategic Focus - Following the sale, NORMA Group will concentrate on its core business of advanced joining technology, specifically in the Industry Applications and Mobility & New Energy sectors [4][7]. - The company aims to strengthen its core business and position itself for sustainable profitable growth through a transformation program expected to be completed by 2028 [7]. Financial Forecast - Post-transaction, NORMA Group has updated its financial forecast for 2025, projecting sales from continuing operations to be between EUR 810 million and EUR 830 million, down from previous estimates that included the Water Management unit [12]. - The adjusted EBIT margin from continuing operations is now expected to be around 0% to 1%, a decrease from the prior forecast of 6% to 8% [12].

Core Viewpoint - German automotive and industrial supplier Norma is selling its water management business to U.S. rival Advanced Drainage Systems for $1 billion, which will significantly impact its revenue and strategic focus [1][2]. Group 1: Deal Details - The sale is valued at $1 billion and is expected to close in the first quarter of 2026 [1][3]. - Norma anticipates a net cash inflow of approximately 620 million to 640 million euros ($731 million to $755 million) from the transaction [2][3]. - The company plans to allocate 300 million euros of the proceeds to repay debt and reserve up to 70 million euros for potential acquisitions in the industrial applications sector [3]. Group 2: Financial Impact - Following the announcement, shares in Norma initially rose by 4% but later fell by 3.8% [2]. - The company expects to lose about 25% of its forecast revenue for the year due to the sale, revising its full-year sales guidance to a range of 810 million to 830 million euros, down from a previous estimate of 1.1 billion to 1.2 billion euros [4]. - The adjusted EBIT margin forecast from continuing operations has been lowered to no more than around 1%, down from a previous forecast of 6%-8% [5]. Group 3: Strategic Focus - The management board intends to return the remaining portion of the net cash inflow to shareholders, potentially through a share buyback program [3]. - The water management business, which generated 90% of its revenue from the U.S. agricultural sector, will be removed from financial reporting starting in October [2][4].

Core Viewpoint - Advanced Drainage Systems, Inc. (ADS) has announced the acquisition of the water management business of Norma Group SE, known as National Diversified Sales (NDS), in an all-cash transaction valued at approximately $1.0 billion [1] Group 1: Acquisition Details - The acquisition is part of ADS's strategy to enhance its position in the stormwater and onsite wastewater industries [1] - The transaction is structured as a definitive stock purchase agreement [1] Group 2: Financial Implications - The total value of the acquisition is approximately $1.0 billion [1]

Group 1 - Madison Small Cap Fund's second-quarter 2025 performance was impacted by initial tariff issues but later rebounded due to a pause in tariff implementation and positive macroeconomic data [1] - The Russell 2000 Index increased by 8.5% for the quarter and is down only 1.79% year-to-date, while Madison Small Cap Fund (class Y) returned 4.42% in the quarter, underperforming compared to the Russell 2000 and Russell 2500 [1] - The fund's top five holdings were highlighted as key investment picks for 2025 [1] Group 2 - Advanced Drainage Systems, Inc. (NYSE:WMS) is a leading manufacturer of thermoplastic corrugated pipes and related water management products, with a market capitalization of $10.933 billion [2] - The stock of Advanced Drainage Systems, Inc. experienced a one-month return of 0.12% and a 52-week decline of 9.63%, closing at $140.61 per share on September 17, 2025 [2] - The company holds a dominant position in the stormwater management subsector, being ten times the size of its nearest competitor, and provides solutions that address increasing storm frequency and intensity [3]