33. Business Combinations

As of 29 February 2024, NORMA Group had acquired all shares (100%) in Teco S.r.l., based in Italy, and its subsidiary Teco Irrigation USA Inc., based in the U.S., for a purchase price of EUR 9,400 thousand, which was paid in cash. The impact of this transaction on the earnings, assets and financial position are immaterial for the Consolidated Financial Statements of NORMA Group. The purchase price allocation resulted in other intangible assets in the amount of EUR 4,935 thousand and goodwill in the amount of EUR 3,189 thousand, which comprises the expansion of the market position, the expertise of the employees and expected synergies.

Due to the strategic importance of the acquisition for growth in the area of Water Management in Europe, extended qualitative information on the acquired company is provided below in addition to the quantitative data.

Teco is a specialist in irrigation products for gardening, landscaping and agriculture. Teco, headquartered in Trani in Apulia, has around 20 years of experience in product development and the sale of micro-irrigation solutions. The Company offers around 800 products, including drippers, sprayers, valves and connecting elements. Its customers include wholesalers and manufacturers of water management systems. In the 2023 fiscal year, Teco generated revenue of around EUR 4.8 million.

The U.S. site acts as a warehouse to meet demand in the U.S. market quickly and efficiently.

The acquisition of Teco represents an important step for NORMA Group to further drive growth in the Water Management sector in Europe.