Key Takeaways
- • Brookfield Asset Management has proposed an all-cash acquisition of Australian plumbing products manufacturer Reliance Worldwide Corporation (RWC) at AUD4.75 per share, valuing the company at approximately AUD4.1bn ($2.9bn).
- • The indicative offer represents a 32% premium to RWC's previous closing price, with shares rising 23% to AUD4.43 in early Sydney trading following the announcement.
- • The acquisition would provide Brookfield significant exposure to the US construction and residential markets, which represent approximately 60% of RWC's revenue; the remainder comes from Asia-Pacific, Europe, and the Middle East operations.
- • Brookfield and RWC have entered an exclusive four-week negotiation period to work toward a binding transaction, following an eight-week due diligence process and three prior approaches from Brookfield, with the initial bid of AUD4.15 per share made in April.
- • RWC, founded in 1949 and known for its SharkBite range of push-to-connect plumbing fittings, has appointed Goldman Sachs as its financial adviser on the transaction.
Summary
Brookfield Asset Management has launched a formal bid for Reliance Worldwide Corporation, an Australian manufacturer of plumbing products and water control systems. The all-cash proposal values RWC at approximately AUD4.1bn ($2.9bn), with an indicative offer price of AUD4.75 per share representing a substantial 32% premium to the company's previous closing price. The announcement immediately moved RWC's share price 23% higher to AUD4.43 in early Sydney trading, reflecting market expectations around deal completion.
The transaction represents Brookfield's third approach to RWC after an initial bid of AUD4.15 per share made in April. The asset manager has since completed an eight-week due diligence process on the target, resulting in the elevated offer. Both parties have now entered an exclusive four-week negotiation window to negotiate and finalize binding transaction terms, with RWC advised by Goldman Sachs.
The strategic rationale centers on RWC's exposure to the North American construction and residential markets, which account for approximately 60% of the company's revenue. The remaining sales derive from Asia-Pacific, European, and Middle Eastern operations. RWC, established in 1949, holds a market-leading position in residential and commercial plumbing through its proprietary SharkBite range of push-to-connect plumbing fittings—products that can be installed without specialist tools—alongside a diversified portfolio of water control and plumbing products serving both residential and commercial end markets.
The transaction represents Brookfield's third approach to RWC after an initial bid of AUD4.15 per share made in April. The asset manager has since completed an eight-week due diligence process on the target, resulting in the elevated offer. Both parties have now entered an exclusive four-week negotiation window to negotiate and finalize binding transaction terms, with RWC advised by Goldman Sachs.
The strategic rationale centers on RWC's exposure to the North American construction and residential markets, which account for approximately 60% of the company's revenue. The remaining sales derive from Asia-Pacific, European, and Middle Eastern operations. RWC, established in 1949, holds a market-leading position in residential and commercial plumbing through its proprietary SharkBite range of push-to-connect plumbing fittings—products that can be installed without specialist tools—alongside a diversified portfolio of water control and plumbing products serving both residential and commercial end markets.
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