v3.26.3
Acquisitions
 6 Months Ended
Sep. 30, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Acquisitions ACQUISITIONS
Acquisition of River Valley Pipe - On May 8, 2025, the Company completed its acquisition of the assets of River Valley Pipe LLC (“River Valley Pipe”), a privately-owned pipe manufacturing company located in the Midwest region of the United States. The preliminary fair value of consideration transferred was approximately $18.8 million. The acquisition was funded from cash on hand. River Valley Pipe is included in the Stormwater reportable segment. The purchase price allocation for assets acquired and liabilities assumed is complete and there were no changes to the valuations of assets acquired and liabilities assumed disclosed in the Fiscal 2026 Form 10-K.
Acquisition of NDS - On February 2, 2026, the Company completed the acquisition of the water management business of Norma Group SE, known as NDS. NDS expands the Company’s water management offering into complementary products through the addition of NDS’ residential water management, access box and irrigation solutions. The preliminary fair value of consideration transferred was approximately $972.5 million, which represented the purchase price of $984.9 million, net of cash acquired of $3.2 million and cash included in held for sale of $9.2 million. The preliminary purchase price excludes transaction costs. The acquisition was primarily funded from cash on hand. NDS is included in the Stormwater reportable segment.
Summary of Consideration Transferred - The Company has applied the acquisition method of accounting in accordance with ASC 805, Business Combinations (“ASC 805”) and recognized assets acquired and liabilities assumed at their fair value as of the date of acquisition, with the excess purchase consideration recorded to goodwill. The purchase price allocation for assets acquired and liabilities assumed is preliminary and will be finalized when valuations are complete and final assessments of the fair value of acquired assets and assumed liabilities are completed. As the Company finalizes the estimation of the fair value of the assets acquired and liabilities assumed, additional adjustments may be recorded during the measurement period (up to one year from the closing date).
The following table summarizes consideration transferred and the preliminary purchase price allocation of identified assets acquired and liabilities assumed:
(Amounts in thousands)Preliminary AmountValuation AdjustmentsUpdated Amount
Cash and cash equivalents$3,189 $— $3,189 
Accounts receivable44,944 1,800 46,744 
Inventory93,092 (494)92,598 
Other current assets1,359 — 1,359 
Assets held for sale(a)
42,554 — 42,554 
Property, plant and equipment67,699 — 67,699 
Goodwill317,677 (1,378)316,299 
Intangible assets456,920 — 456,920 
Deferred tax assets5,751 (488)5,263 
Other assets17,212 — 17,212 
Total assets acquired1,050,397 (560)1,049,837 
Accounts payable(10,664)— (10,664)
Accrued expenses(29,285)560 (28,725)
Liabilities held for sale(a)
(13,779)— (13,779)
Other liabilities(11,788)— (11,788)
Total liabilities acquired(65,516)560 (64,956)
Total preliminary fair value of consideration transferred
$984,881 $— $984,881 
(a)Upon acquisition, certain NDS entities met the held-for-sale criteria. The Company accordingly classified the associated assets acquired and liabilities assumed as held for sale.
The preliminary goodwill of $316.3 million represents the excess of consideration transferred over the preliminary fair value of assets acquired and liabilities assumed and is attributable to expected cross-selling and operating efficiencies. The goodwill is assigned to the Stormwater reportable segment and $271.7 million of the preliminary goodwill is deductible for income tax purposes.
Pro Forma Financial Information - The unaudited pro forma information for the three and six months ended September 30, 2025 presented below includes the effects of the NDS acquisition as if it had been consummated as of April 1, 2024, with adjustments to give effect to pro forma events that are directly attributable to the acquisition of NDS. Adjustments include those related to the depreciation and amortization of acquired fixed and intangible assets, transaction costs, inventory step-up and the estimated tax impacts thereof. The unaudited pro forma information does not reflect any operating efficiency or potential cost savings that could result from the consolidation of NDS. Accordingly, the unaudited pro forma information is presented for informational purposes only and is not necessarily indicative of the actual results of the combined company if the acquisition had occurred at the beginning of the period presented, nor is it indicative of the future results of operations.
(Amounts in thousands)Three Months Ended September 30, 2025Six Months Ended September 30, 2025
Net Sales$924,300 $1,839,467 
Net income attributable to ADS168,442 320,266 

During the three and six months ended September 30, 2026, the Company incurred $5.6 million and $8.8 million, respectively, of transaction and integration costs related to the acquisition such as legal, accounting, valuation and other professional services. These costs are included in selling, general and administrative expenses in the Consolidated Statements of Operations. These costs are deductible for income tax purposes.
Acquisition of StormTrap - On October 1, 2026, the Company entered into a definitive agreement to acquire StormTrap Investments LLC (“StormTrap”), an industry leader in large volume, space-constrained, highly engineered stormwater solutions for a purchase price of approximately $530 million. The acquisition will be funded
by cash on hand and existing credit line capacity. The transaction is expected to close in the third quarter of fiscal 2027.