Interim report

• Significant milestone in NORMA Group’s transformation into a focused industrial supplier
• Transaction enterprise value amounts to one billion US dollars
• Proceeds to be used for debt reduction, value-enhancing acquisitions, and returns to shareholders
• Buyer is Advanced Drainage Systems, based in Ohio (USA), a leading manufacturer of stormwater and wastewater management solutions

NORMA Group today signed an agreement to sell its Water Management business unit to Advanced Drainage Systems, Inc. (“ADS”). The enterprise value of the transaction is USD 1.0 billion. The transaction is subject to customary regulatory approvals and is expected to close in the first quarter of 2026.

CEO Mark Wilhelms: “The agreement represents a significant milestone in NORMA Group’s transformation into a focused industrial supplier. Once the transaction has been completed, we will eliminate our net debt, putting the company on even more sound financial footing and providing us with greater flexibility to expand our industrial business. We will now focus all our energy on consistently strengthening our core business of advanced joining technology in the two complementary business units Industry Applications and Mobility & New Energy.”

The Water Management business unit consists of several subsidiaries with a total of six plants in the USA, Mexico, India, Malaysia and Italy as well as additional sales and distribution locations. The business unit’s workforce comprises around 1,100 employees, primarily in America and Asia. Water Management develops, produces and sells irrigation systems, products for rainwater management and connection components for water infrastructure. In 2024, the Water Management business unit generated sales of around EUR 300 million (around USD 320 million), corresponding to a quarter of the Group’s sales of around EUR 1.2 billion.

Mark Wilhelms: “The water management business has developed very successfully over the past ten years under our ownership and delivered significant revenue and profitability growth thanks to the dedication of our employees in America, Asia and Europe. We would like to express our sincere gratitude to its management team and all our Water Management employees as well as to our business partners for the longstanding cooperation. We are convinced that ADS represents a very good home for the business.”

Founded in 1966 and headquartered in Hilliard, Ohio, ADS is a leading manufacturer of innovative stormwater and onsite wastewater solutions. The company is listed on the New York Stock Exchange.

According to initial calculations, NORMA Group expects a net cash inflow of around EUR 620 million to around EUR 640 million from a successful closing. This total is based on proceeds upon completion of the agreement which are subject to the usual purchase price adjustment mechanisms as of the reporting date and is net of taxes and transaction costs. The proceeds from the sale are to be used to reduce debt by around EUR 300 million. The company expects to reserve up to EUR 70 million for value-accretive acquisitions to expand the Industry Applications business unit. The Management Board plans to return the remaining portion of the net cash inflow to shareholders, potentially in a first step through a share buyback program. After the completion of the sale, the Management Board and Supervisory Board will consult on the final use of the proceeds.

NORMA Group announced at the end of 2024opens in a new tab that it intended to sell the Water Management business unit and focus on its inherent core business. The sale is part of NORMA Group’s transformation into a focused industrial supplier, which is expected to be completed by 2028. The transformation consists of three building blocks: The growth plans in the Industry Applications business unit will be brought forward, administrative costs will be reduced and site capacities optimized. The objective of the transformation is to strengthen NORMA Group’s core business with advanced joining technology and to position the company for sustainably profitable growth. The Water Management business unit will be classified as a “discontinued operation” with effect from September 30, 2025. Consequently, NORMA Groups updates its forecast for full-year 2025 in relation to continuing operations:

• The Management Board expects Group sales from continuing operations to be in the range of around EUR 810 million to around EUR 830 million (previously including Water Management: “of around EUR 1.1 billion to around EUR 1.2 billion”).

• For the adjusted EBIT margin from continuing operations, the Management Board anticipates a figure of around 0 percent to around 1 percent (previously including Water Management: “of around 6 percent to around 8 percent”).

NORMA Group aims to significantly increase profitability in the course of its ongoing transformation program 2025 to 2028. 

NORMA Group has secured a new contract to supply eM Safe quick connectors for a new platform of electric vehicles by a large US-based car maker. Starting in 2027, NORMA Group will deliver quick connectors for the battery thermal management of the vehicles. Up to 90,000 electric cars are to be equipped every year until 2034. The contract has a volume of around EUR 14 million. The new BEV platform consists of cost-efficient electric vehicles, aiming to support expansion of electric mobility among a wide range of customers. 

CEO Mark Wilhelms: “We have a longstanding relationship with the OEM, as we have been supplying them with joining technology for combustion engine cars for many years. We are now excited to collaborate on the road towards electric mobility. With our engineering expertise, global quality standards and certifications, we are an ideal development partner for car makers broadening their portfolio of low-emission mobility.”

The eM Safe quick connector is specifically tailored to meet requirements in battery-electric vehicles and includes a flow-optimized geometry to support a consistent pressure level of the cooling fluid. The quick connector was designed according to standards of the SAE (Society of Automotive Engineers), thus catering to international markets. With two sealing O-rings, the connector offers a redundancy, helping to prevent leaks. In the assembly process, the connection can only be locked when the spigot is correctly positioned and securely connected. This so-called Poka-Yoke function prevents assembly error, adding extra safety to the connection in the battery thermal management system.

Michael Potts, President Mobility & New Energy at NORMA Group, stresses: “In electric vehicles, leak-free connections are vital to delivering safe, reliable vehicle performance. Our eM Safe quick connector stands out by combining top-tier safety, effortless handling, and exceptional performance – making it the smart choice for modern e-mobility systems.”

NORMA Group manufactures the quick connector at its plant in St. Clair, Michigan, and will deliver to a tier customer in the US.

NORMA Group has introduced a new corrosion-resistant stainless steel quad cable cleat designed to meet the specific requirements of large-scale electrical installations, such as data centers. The cable cleat is engineered to secure up to four cables simultaneously, offering superior mechanical stability, enhanced protection, and efficient space utilization in high-demand environments.

The product was launched to the market in December 2024 and is produced in Changzhou, China. In the first half of 2025, NORMA Group received a significant order by a US customer for a data center project in Malaysia, which includes the new quad cable cleat. The company will deliver more than 92,000 cable cleats, thereof around 38 percent attributed to the new quad cable cleat. The cable cleats will be used to secure the more than 170 kilometers of electrical cables needed to power the data center.

“This order highlights the market need and our ability to develop and deliver tailored solutions quickly,” said Mark Wilhelms, CEO of NORMA Group. “We see significant growth potential for our industrial business in the Asia-Pacific region, particularly in the area of data centers, rail infrastructure, and other high-performance applications.”

With this newest addition, NORMA Group now offers a complete range of cable cleats – single, trefoil, and quad – broadening its product portfolio and strengthening its position in global markets.