Brookfield to Acquire Reliance Worldwide for A$4.1 Billion, Sending Shares to 1-Year High

Shares of Reliance Worldwide Corp (ASX:RWC) surged to an over one-year high on Wednesday after the Australian plumbing-products manufacturer agreed to be acquired by Brookfield in a deal with an enterprise value of approximately A$4.1 billion ($2.9 billion), including debt.

The Acquisition Agreement

Brookfield will pay A$4.75 per share in cash for Reliance Worldwide, an offer that represents a substantial premium to the company's recent trading levels. The agreement, which has been unanimously endorsed by Reliance Worldwide's directors, follows a series of four approaches from Brookfield this year with progressively higher offers of A$4.15, A$4.25, and A$4.50 per share.

The deal was finalized after an approximately eight-week due-diligence process. The agreement also includes a 30-day "go-shop" provision, which allows Reliance Worldwide to solicit and negotiate alternative proposals even after signing the scheme implementation deed with Brookfield. Shareholders will have the option to receive their payment in either Australian or U.S. dollars.

Market Reaction

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Following the announcement, Reliance Worldwide's shares jumped 6.5% to A$4.61, their highest level since August 18, 2025. The stock's performance significantly outpaced the broader market, with the S&P/ASX 200 index gaining a modest 0.3% during the same session.

Context and Rationale

The takeover follows a difficult trading period for Reliance Worldwide, which owns brands including SharkBite and John Guest. For fiscal year 2026, the company reported a revenue decline of 0.7% to US$1.31 billion and a 12.8% drop in adjusted EBITDA to US$242.1 million, citing headwinds from U.S. tariffs, higher copper costs, and general cost inflation.

Brookfield highlighted Reliance Worldwide’s international plumbing business and significant exposure to the U.S. market as key attractions for the investment. The acquisition comes as Reliance Worldwide was undergoing its own restructuring, which included the planned closure of some manufacturing operations in Melbourne.