ADS–NDS Merger Signals New Era for Stormwater Market

Pending $875M ADS–NDS deal highlights trend toward integrated stormwater solutions

2 Oct 2025

The US stormwater market is entering a shakeup that could change how cities and contractors handle drainage. Advanced Drainage Systems (ADS) plans to buy National Diversified Sales (NDS) in a deal worth about $875 million, a move expected to close in early 2026 if regulators sign off.

If finalized, the merger would pair ADS’s underground systems with NDS’s surface and landscape solutions, creating a supplier that can cover the full spectrum of stormwater needs. Contractors and municipalities increasingly want that kind of one-stop shop, where procurement is simpler and projects move with fewer delays.

The numbers are significant. NDS brings in roughly $313 million a year in sales, and ADS says it could trim $25 million in costs annually within three years of the deal. Just as important, the company sees a chance to widen its reach through stronger retail and contractor networks, putting more products in more hands as extreme weather drives demand.

Analysts say the ADS–NDS deal fits a broader trend. With heavy rain and flash floods becoming more common, cities are under pressure to bolster infrastructure without blowing budgets. Larger suppliers that offer bundled solutions are poised to gain ground, while smaller firms may find a niche in specialized technologies.

Still, the consolidation raises questions. A shrinking pool of suppliers could limit buyer choice and drive up costs. Yet the momentum is hard to ignore. Stormwater management, once an afterthought in infrastructure planning, is now being recognized as essential in a climate-challenged world.

If the deal goes through, it will mark a turning point: a market leaning toward bigger players, integrated systems, and a stronger focus on resilience.