Advanced Drainage Systems (NYSE:WMS) Earnings Call Presentation

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]