NORMA Group SE / DE000A1H8BV3

NORMA Group signs agreement to sell Water Management business unit and updates forecast for financial year 2025 Maintal, Germany, September 23, 2025 – NORMA Group (ISIN: DE000A1H8BV3) today signed an agreement with Advanced Drainage Systems, Inc. to sell its Water Management strategic business unit. Subsidiaries in the Americas, Asia-Pacific and Europe will be transferred to the buyer upon completion of the transaction. In 2024, the business that has been put up for sale generated net sales of around USD 320 million and adjusted EBITDA* of around USD 78 million. The targeted business has an enterprise value of USD 1 billion. After deducting taxes and transaction costs and taking into account the usual purchase price adjustment clauses, NORMA Group expects, according to initial calculations, a net cash inflow of around EUR 620 million to around EUR 640 million from a successful closing. The Management Board will use around EUR 300 million of the proceeds from the sale to repay debt. In addition, the Management Board is considering setting aside an amount of up to EUR 70 million as a basis for value-enhancing acquisitions in the Industry Applications strategic business unit. The Management Board plans to return the remaining portion of the net cash inflow to shareholders. After the completion of the sale, the Management Board and Supervisory Board will consult on the final use of the proceeds. Completion of the transaction is subject to standard conditions, including regulatory approvals. Completion is currently expected in the first quarter of 2026. Due to the signing of the purchase agreement, the Water Management business unit will be classified as a “discontinued operation” with effect from September 30, 2025. For continuing operations, the Management Board forecasts the following figures for Group sales and adjusted EBIT margin for full-year 2025 (forecast based on the former Group structure including the Water Management business unit for comparison purposes, indicated in parentheses with “previously including Water Management”): 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% to around 1% (previously including Water Management: “of around 6% to around 8%”).     *  EBITDA as prepared by PwC as part of the transaction process, adjusted by around USD 1 million pro forma adjustments and normalizations, and around USD 5 million standalone adjustments.   **  NORMA Group adjusts certain expenses for the operational management of the company. Details on the adjustments can be found on page 80 of the 2024 Annual Report.   Contact: Sebastian Lehmann
Vice President Investor Relations & Corporate Social Responsibility
Tel: +49 6181 6102 741
E-Mail: Sebastian.Lehmann@normagroup.com