NORMA Group Sells Water Management Unit to ADS for $1B, Boosts Cash, Reduces Debt
NORMA Group has sold its Water Management business unit to Advanced Drainage Systems, Inc. (ADS) for USD 1.0 billion. The deal is set to close in the first quarter of 2026, subject to regulatory approvals.
The sale is expected to bring a net cash inflow of around EUR 620 million to EUR 640 million for NORMA Group. The company plans to use the proceeds to reduce debt by around EUR 300 million and may return the remaining portion to shareholders.
The Water Management division, which generated sales of around EUR 300 million (around USD 320 million) in 2024, will be classified as a 'discontinued operation' as of September 30, 2025. This unit accounted for a quarter of the group's sales. NORMA Group's updated forecast for full-year 2025, excluding Water Management, anticipates an adjusted EBIT margin from continuing operations of around 0 percent to around 1 percent, with Group sales from continuing operations expected to be around EUR 810 million to around EUR 830 million.
The sale of NORMA Group's Water Management business unit to ADS is expected to significantly impact the company's financial situation. The proceeds will be used to reduce debt and potentially benefit shareholders. The group's updated forecasts for 2025, excluding the Water Management unit, reflect the impact of this significant transaction.
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