NORMA Group (ETR:NOEJ) said its Supervisory Board has decided a change at the top of the company is “sensible and necessary” as the manufacturer moves into the next phase of its strategic transformation, according to remarks made on a conference call held on short notice. The company’s chair of the Supervisory Board, speaking from Maintal alongside CFO Annette Stieve and COO Daniel Heymann, said he will serve as interim CEO for up to 12 months while the board runs a structured search for a permanent successor.
Leadership change tied to pace of transformation
On the call, the interim CEO said NORMA had been “stabilized” through challenging years, citing a stable EBIT margin of around 8%. He described the decision to focus the company on its core areas—Industry Applications and Mobility—and to sell the Water Management business as “important” and “far-reaching,” adding that it would fundamentally change NORMA.
Interim structure and governance changes
The interim CEO said the Supervisory Board has launched a structured process to identify a new chief executive with “appropriate industrial expertise,” reflecting the future emphasis on the industrial business. During the transition, he said Mrs. Müller-Kirchhof will assume his role as chair of the Supervisory Board until he returns, which he characterized as ensuring there is “no gap” in governance on either side.
Management stressed that there is no intention to change the strategy developed over the last several quarters by the Executive Board and Supervisory Board. The interim CEO reiterated the company’s aim to transform from a conglomerate with limited synergies into a more focused industrial supplier.
Water Management divestment timeline reaffirmed
In response to analyst questions, management said the disposal process for the Water Management business will continue unchanged. The interim CEO noted that advisors have been selected to support the process and referenced prior communication from the CFO indicating a timetable that includes:
- Closing expected around mid-year/summertime, with the process continuing into the second half.
- Funds transfer expected around year-end, which he described in the context of closing timing.
Daniel Heymann added that, pragmatically, the Water transaction process is expected to take roughly nine to 12 months until “real execution,” and that this work must run in parallel with efforts to strengthen Industry Applications.
Industry Applications focus to combine internal efforts and M&A
Asked how NORMA should think about strengthening Industry Applications and whether the company might pursue acquisitions before completing the Water Management sale, the interim CEO said the company should be prepared to pursue M&A but with a disciplined approach. He indicated a preference to fund acquisitions using cash that is “really available to the company,” rather than taking on new debt as a first step, while acknowledging that decisions will depend on the targets available and strategic fit.
He described the approach as being ready, scanning targets, studying them, and ensuring that cash inflows and outflows are “reasonably well synchronized.” The mix between internal development and acquisitions will depend on which targets are selected. Heymann said the company is already focusing on a shortlist and that, in his view, the Water deal and Industry Applications M&A need to proceed as “a fully simultaneous process.”
No additional divestments indicated; CEO profile outlined
When asked whether NORMA was considering other disposals—such as parts of Mobility and New Energy—the interim CEO said he does not envision changes there, adding that the current setup for the automotive business, including fluid-related activities, will remain as it is.
On the profile for the incoming CEO, the interim CEO said the search is the Supervisory Board’s responsibility and that he is not leading it. Still, he said the board is looking for a candidate with:
- Strong industrial experience
- Transformation experience
- M&A experience
- International background
In closing remarks, the interim CEO said he is “thrilled” by the opportunity to help move NORMA forward and reiterated his view that the company has a good future given ongoing needs to move water and gas, with NORMA’s products providing technical solutions for controlled handling.
About NORMA Group (ETR:NOEJ)
NORMA Group SE, together with its subsidiaries, manufactures and sells engineered joining technology solutions in Europe, the Middle East, Africa, the Americas, and the Asia-Pacific. The company provides quick connectors, hose clamps, retaining clamps, and pipe couplings. It also offers various products for stormwater management, landscape irrigation, and joining components for water infrastructure solutions. The company sells its products to distributors, original equipment manufacturer aftermarket customers, technical wholesalers, and hardware stores under the ABA, Breeze, Clamp-All, CONNECTORS, FISH, Gemi, Kimplas, NDS, NORMA, Raindrip, R.G.RAY, Serflex, TORCA, and TRUSTLENE brand names.
