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EQS-News: NORMA Group sells Water Management business to ADS
Markets.Businessinsider.Com· 2025-09-23 06:41
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].
3 Reasons to Buy Pool Corp. Stock Like There's No Tomorrow
The Motley Fool· 2025-06-27 07:15
Core Viewpoint - Pool Corp. is facing a challenging economic environment, with its stock down approximately 12% year to date, but this may present a buying opportunity for investors as it is a high-quality industry leader available at a discount [1]. Group 1: Company Overview - Pool Corp. is the world's largest pool supplies distributor, operating 448 sales centers across North America, Europe, and Australia, serving over 125,000 customers [5]. - The company owns the Pinch A Penny retail franchise, which has around 300 locations [5]. - Pool Corp.'s revenue is significantly driven by recurring sales, with 86% coming from consistent upkeep products for installed pools [6]. Group 2: Financial Performance - Over the past five years, Pool Corp. has achieved a 14% compound annual growth rate (CAGR) in total revenue, reaching $5.3 billion in 2024 [8]. - Despite a slowdown in new pool construction, management remains optimistic about growth from its expanding private-label business and the Pool360 digital platform [9][10]. - For 2025, Pool Corp. anticipates net sales to be "flat to slightly higher" year over year, with an earnings-per-share (EPS) estimate of $11.08 to $11.58, indicating a 3% increase at the midpoint compared to 2024 [10]. Group 3: Capital Allocation and Shareholder Returns - Pool Corp. has a strong free cash flow generation, allowing for a generous capital allocation strategy, including a recent 4% increase in its quarterly dividend to $1.25 per share, yielding about 1.3% [11]. - The company has also increased its share repurchase authorization to $600 million, demonstrating its commitment to shareholders [11]. Group 4: Valuation and Market Position - Pool Corp.'s current forward price-to-earnings (P/E) ratio is 27, which is a discount compared to its historical average P/E of around 30 over the past decade, suggesting the stock may be undervalued [12]. - A potential recovery in the housing market and pool construction, aided by subdued inflation and lower interest rates, could enhance company performance [14].