Innovation Flows: ADS Targets Next-Gen Drainage Systems

ADS’s $1bn purchase of NDS aims to merge pipes, data and sustainability in U.S. drainage

17 Oct 2025

When Advanced Drainage Systems (ADS) announced in September that it would buy National Diversified Sales (NDS) for $1 billion, few doubted the deal’s ambition. If regulators approve the acquisition, expected to close in early 2026, it would unite two of America’s best-known names in drainage and possibly reshape how the country handles its stormwater.

ADS’s expertise lies underground, in pipes and chambers. NDS’s strength is above ground, in surface drains and flow controls. Together, they would offer a product range spanning street inlets to subsurface reservoirs. Municipalities and contractors could see faster project delivery, smoother system integration and some savings from a more efficient supply chain.

For analysts, the merger reflects a broader shift. Ageing infrastructure and fiercer storms are forcing a rethink of how water is managed. “This acquisition represents more than business growth; it is a signal that stormwater design is evolving toward sustainability and intelligence,” says Rebecca Klein, a civil-infrastructure consultant in Chicago. “We’re entering an era where stormwater isn’t just managed, it’s harnessed.”

The partnership could accelerate adoption of hybrid systems that blend concrete with greenery, such as permeable pavements, bioswales and other designs that mimic nature. Both firms have been investing in recycled materials and low-impact construction. ADS hopes the deal will also speed the rollout of digital monitoring and real-time data tools to make drainage more adaptive.

Some fret that consolidation may curb competition. Others argue it could do the opposite by promoting standardisation and shared technology. “If this alignment drives greater interoperability, the entire industry stands to benefit,” says Klein.

For ADS, the acquisition marks an attempt to move beyond static infrastructure toward something smarter and greener. In a sector long defined by gravity and grit, a dose of intelligence may soon flow through America’s drains.