Reliance Worldwide Agrees to $2.9 Billion Buyout by Brookfield

Australian plumbing supplies company Reliance Worldwide (RWC) has agreed to a buyout offer from global investment firm Brookfield, valuing the company at approximately $2.9 billion. The deal provides a path forward for Reliance as it navigates significant economic headwinds in its key North American market.

The Acquisition Agreement

Brookfield's successful offer of A$4.75 per share in cash came after three previous approaches were made in the first half of the year, according to a Reuters report. The agreement includes a "Go Shop" provision, which allows Reliance Worldwide to actively solicit and negotiate potentially superior competing offers for a specified period.

In a statement, Brookfield described Reliance as a "global, market-leading industrial company with strong brands, durable customer relationships and clear opportunities to create value." The firm plans to leverage its expertise to support Reliance's operational investments and product expansion.

Rationale Amid Market Pressures

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Reliance Worldwide's board unanimously recommended the transaction, citing the certainty it provides to shareholders. "The board also considered the execution risk to deliver future growth, as well as the broader macroeconomic and geopolitical environment, against the certainty of value delivered by the cash consideration," said Reliance Chair Russell Chenu in a statement.

This decision comes as the company faces significant challenges, particularly from U.S. tariffs. North America accounts for the majority of Reliance's profits, but the company reported that its Americas sales fell 4% in fiscal 2026. Adjusted operating earnings in the region declined by more than 11% due to the tariffs, lower sales volumes, and rising input costs.

Market Reaction

Investors responded positively to the news. Following the announcement, shares of Reliance Worldwide jumped more than 7% in early trading to A$4.65, their highest point since May of the previous year. The offer price of A$4.75 represents a significant premium for shareholders.