Brookfield Asset Management, through its flagship private equity strategy, has entered into a definitive agreement to acquire 100 percent of Reliance Worldwide Corporation (ASX: RWC), a global manufacturer of plumbing and heating solutions, in an all-cash transaction that values the business at an enterprise value of approximately US$2.8 billion.
(Previously, Brookfield and Reliance had entered exclusive talks, but had not agreed on a price.)
Now, the Reliance Board has unanimously recommended the US$3.38 per share proposal to shareholders, who will vote on the agreement. Brookfield's offer represents a premium of approximately 32% over Reliance's August 17 closing price and marks the culmination of a months-long pursuit that included three earlier bids at lower levels. More on that in a minute.
Headquartered in the United States and listed on the Australian Securities Exchange, Reliance Worldwide is a leading global manufacturer of plumbing products, with operations spanning the Americas, Europe, the Middle East, and Asia Pacific. The company is best known for its market-leading push-to-connect fittings business, sold under the SharkBite brand, alongside a growing portfolio of adjacent brands including pressure-valve maker Cash Acme. Reliance depends on North America for the majority of its profits, and the business has faced pressure over the past year from U.S. tariff policy, a downturn in the U.S. housing sector, and higher input costs. Americas sales slipped 4 percent in Reliance's 2026 financial year, while adjusted EBITDA fell 12.8 percent, and the company's stock had declined roughly 40 percent from its 2024 high before Brookfield's initial approach.
With this acquisition, Brookfield is positioning Reliance for its next phase of growth as a private company, backed by Brookfield's deep industrials and U.S. housing market expertise. The transaction will support continued investment in Reliance's product portfolio, its manufacturing footprint, and its global distribution capabilities across the Americas and worldwide. Speaking about the impact of the acquisition, Anuj Ranjan, CEO of Brookfield's Private Equity group, stated:
"Brookfield's expertise in industrials and the U.S. housing market positions us well to support Reliance in its next phase of growth and over the long term."
As mentioned above, the transaction follows a months-long pursuit by Brookfield that began earlier this year with three unsolicited proposals in April and May at (AUD=Australian dollar) AUD$4.15, AUD$4.25, and AUD$4.50 per share, all of which were rejected by Reliance. Brookfield returned in August with a fourth approach at AUD$4.75 per share, before agreeing to a four-week period of exclusive due diligence and ultimately elevating the offer to a US-dollar-denominated proposal of US$3.38 per share, equivalent to the AUD$4.75 August bid. Shareholders who approve the deal may elect to receive payment in either currency. Reflecting on the Board's endorsement of the transaction, Russell Chenu, Chair of Reliance Worldwide, remarked:
"The board is unanimous in its view that this transaction is in the best interests of RWC shareholders."
The agreement includes a "go-shop" provision, unusual in Australian deals, that allows Reliance to solicit rival offers, share due diligence materials, and negotiate terms with alternative bidders through October 15, with Brookfield retaining the right to match any competing proposal. Two of Australia's largest pension funds, AustralianSuper and Aware Super, together own approximately 20.2 percent of Reliance and will play a significant role in the shareholder vote. Brookfield plans to fund the transaction through its Brookfield Capital Partners strategy and its affiliate Brookfield Business Corporation (NYSE/TSX: BBUC). The transaction is subject to customary shareholder, regulatory, and government approvals and is expected to close in the first quarter of 2027.
Brookfield Asset Management is a global alternative asset manager with approximately US$1 trillion in assets under management across renewable power and transition, infrastructure, private equity, real estate, and credit strategies. The firm's flagship private equity strategy focuses on acquiring and building market-leading industrial and business services companies, and Brookfield's broader portfolio in the home and building products sector includes Service Experts, a nationwide HVAC field service company.
The acquisition of Reliance Worldwide underscores Brookfield's commitment to strategic growth in the industrials and building products sectors and its efforts to strengthen its position as a leading long-term investor in market-leading global manufacturers.
