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Stock impact report

Germany's Norma sells water management business to US company for $1 billion [Yahoo! Finance]

Advanced Drainage Systems, Inc. (WMS) 
Last advanced drainage systems, inc. earnings: 2/6 06:40 am Check Earnings Report
US:NYSE Investor Relations: investors.ads-pipe.com
Company Research Source: Yahoo! Finance
water management business to U.S. rival Advanced Drainage Systems in a deal valued at $1 billion, the companies said on Tuesday. As a result of the deal, Norma is set to lose roughly a quarter of its forecast revenue this year as it works towards becoming a more focused industrial supplier. Shares in Norma opened 4% higher on Tuesday after the announcement of the deal. However, they reversed course and were trading 3.8% lower at around 0800 GMT. The company built up the irrigation and drainage technology business in recent years through acquisitions, with 90% of the division's revenue coming from the United States and customers mainly from the agricultural sector. Norma expects a net cash inflow in a range of 620 million to 640 million euros ($731 million to $755 million) from the sale. It plans to use 300 million euros of the proceeds to repay debt and to set aside up to 70 million for potential acquisitions in the industry applications business. "The management board pla Show less Read more
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