Two Titans Aim to Reinvent Stormwater Management

ADS’s $1B bid for NDS could reshape how cities manage rain and runoff

10 Oct 2025

Advanced Drainage Systems (ADS) has announced plans to acquire National Diversified Sales (NDS) in a deal valued at about $1bn, or roughly $875mn after tax adjustments. The agreement, disclosed in late September 2025, remains subject to regulatory approval and standard closing conditions.

If completed, the merger would combine two leading US stormwater and drainage specialists, expanding coverage from large municipal infrastructure to residential and commercial projects. ADS, known for its high-performance drainage systems, would gain NDS’s expertise in flow control, site-level drainage and irrigation. The combined group is expected to offer more integrated solutions for capturing, treating and reusing stormwater.

Analysts view the move as a response to rising environmental and regulatory demands. “This acquisition aligns with the market’s shift toward holistic water management,” said Rachel Evans of WaterTech Insights. “By integrating manufacturing, engineering and digital monitoring, ADS is positioning itself to lead in climate-resilient infrastructure.”

The transaction follows a broader trend of consolidation within the environmental infrastructure sector. Public and private investment in green infrastructure has increased as cities upgrade systems to cope with heavier rainfall and stricter stormwater rules. NDS’s strong distribution network could enhance ADS’s production scale and market access once integration is complete.

Operational complexity remains a potential obstacle. Combining two sizable organisations will require coordination across supply chains and corporate cultures. Yet many in the industry see strategic value in the merger. “This kind of alignment can drive the next generation of stormwater innovation,” said sustainability consultant Kevin Hall. “It’s about efficiency, adaptability and systems that respond to a changing climate.”

If approved, the deal would mark a significant step in the evolution of US water management, underscoring how infrastructure providers are adapting to more volatile environmental conditions.