NORMA Group Receives Binding Bids for Water Division, Negotiations Underway

NORMA Group has received binding bids for its Water Management Business and is in advanced negotiations with a select group of bidders. The company has not disclosed further details, but Bloomberg reports that Advanced Drainage Systems Inc. is in talks to acquire the unit in a deal valued at approximately €850 million or $1 billion. A formal agreement could be reached in the coming days.

Norma Group SE, a German automotive and industrial supplier, has received binding bids for its water management business, according to recent reports. The company has not disclosed further details, but Bloomberg reports that Advanced Drainage Systems Inc. (ADS) is in advanced talks to acquire the unit in a deal valued at approximately €850 million or $1 billion ADS Said in Advanced Talks for Norma's $1 Billion Water ...^[1].

The Hilliard, Ohio-based ADS submitted a binding bid before last week’s deadline, and an agreement could potentially be finalized in the coming days, said sources familiar with the matter Norma Group in talks over sale of water management business^[2]. No final decisions have been made, and other bidders could still emerge in the process.

Norma Group, based in the outskirts of Frankfurt, has customers in 100 countries with about 7,800 employees. It anticipates sales of around €1.1 billion to €1.2 billion this year. The company was created from the 2006 merger of Sweden’s ABA Group and Germany’s Rasmussen GmbH. Activist investor Teleios Capital is the firm’s biggest shareholder with a stake of close to 21% ADS Said in Advanced Talks for Norma's $1 Billion Water ...^[1].

In November 2024, Norma announced a sale process for the water management business, stating it wants to focus on its core industrial business. The news sent the firm’s shares up by as much as 23% the following trading day as analysts said the divestment could trigger a re-rating. The company plans to reinvest parts of the proceeds into targeted M&A transactions for its industry applications unit ADS Said in Advanced Talks for Norma's $1 Billion Water ...^[1].

ADS, which provides stormwater and onsite wastewater management, is also one of the largest plastic recycling companies in North America. The company has a market value of almost $11 billion ADS Said in Advanced Talks for Norma's $1 Billion Water ...^[1].

The potential acquisition by ADS would expand the company's operations in Europe and could provide additional synergies in the water management sector. However, the final outcome of the negotiations remains uncertain, and other bidders could still emerge. The company will publish the details once the negotiations are finalized and an agreement is reached Advanced Drainage Systems in talks to buy Norma Group’s water unit - Bloomberg^[3].