Advanced Drainage Systems to acquire National Diversified Sales

Advanced Drainage Systems Inc. (ADS), Hilliard, Ohio, has entered into a definitive stock purchase agreement to acquire National Diversified Sales (NDS), the wastewater management business of German company Norma Group SE.

ADS says the transaction will introduce new solutions to its allied products portfolio, broaden customer reach and enhance distribution capabilities. Key goals/expectations of the acquisition include:

• added complementary product solutions in water capture;
• enhanced solutions for residential, nonresidential, irrigation and turf applications via supplementary distribution approaches;
• enhanced multichannel strategy via e-commerce and direct-to-consumer sales;
• expanded manufacturing and distribution footprint;
• improved relationships with turf and irrigation/waterworks distributors and retailers in existing customer segments; and
• increased exposure to the landscape irrigation and residential repair and remodel segments of industry.

“ADS continues to evolve from a pipe manufacturing company to an enterprise providing a wide range of stormwater and on-site wastewater solutions, with leading manufacturing, logistics and design services,” says Scott Barbour, CEO and president of ADS. “The acquisition of NDS marks another important milestone in ADS’ journey as it accelerates our strategy to diversify and increase the mix of highly profitable allied and infiltrator products that enhance resiliency, support profitable growth and allow ADS to pursue water management projects across a broader set of applications. NDS is a leader across its product categories and is highly complementary to ADS’ solutions and go-to-market strategies.”

Over the course of 12 months (ending June 2025), NDS generated $313 in revenue with approximately 90 percent of sales in the U.S. The transaction, valued at approximately $1 billion, is expected to close in the first quarter of 2026 and to be accretive to adjusted earnings per share in the first year, according to ADS.

“Our disciplined capital allocation framework and strong balance sheet provide us the flexibility to act when opportunities like this arise while continuing to invest in our business and return capital to shareholders,” Barber says. “Through our investment in NDS and applying ADS’ proven operating model and integration expertise, we expect to drive enhanced profitability and realize significant synergies as a combined entity. The combination of NDS’ well-regarded brand and product portfolio in residential stormwater and irrigation with ADS’ complementary capabilities, operating discipline and customer reach, will enhance the solutions we deliver to our customers. With a proven track record of creating value through strategic acquisitions, we are confident this combination will increase our exposure to markets with powerful secular tailwinds, where the need to manage and protect water—our most precious resource—continues to grow, safeguarding both communities and the environment.”

ADS, which recycles postconumer and postindustrial high-density polyethylene and polypropylene to manufacture its pipe and water management products, discussed the acquisition during a Sept. 23 webcast. An online replay of the webcast can be accessed at www.investors.ads-pipe.com/events-and-presentations.