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].