Reliance Worldwide has agreed to give Brookfield Asset Management four weeks of exclusive due diligence on a takeover proposal that values the plumbing supplier at about $2.9 billion.
The company said Monday it would open its books to the investment firm as discussions move forward. Brookfield’s latest approach follows three bids from earlier this year, according to news reports. Brookfield's current cash offer price of 4.75 Australian dollars per share is followed by earlier unsolicited proposals in April and May of 4.15, 4.25 and 4.50 Australian dollars cash per share.
"After careful consideration of the Proposal, the Board of RWC has determined to enter into the Process Deed with Brookfield to enable Brookfield to progress the Proposal," said the Reliance spokesperson.
Based in Australia, Reliance Worldwide owns several plumbing supply brands sold around the world. Its portfolio includes push-to-connect fittings company SharkBite and pressure-valve maker Cash Acme.
MarketWatch described the timing of the bid against a backdrop of pressure on the company’s stock and broader market concerns. Investors in the company have been unsettled by U.S. tariff policy. Plus, there's been a downturn in the housing sector.
"Brookfield’s swoop on Reliance Worldwide comes after a sustained period of share-price weakness, with the stock down some 40% from its high in 2024" - MarketWatch news site
Brookfield is also the parent company of the nationwide field service company, Service Experts.
I will keep you updated as this deal continues to develop.
