Key facts
- Reliance Worldwide agreed to a $2.9 billion buyout from Brookfield.
- Reliance Worldwide shares rose over 7% to A$4.65.
- The deal offers shareholders A$4.75 per share.
- Reliance Worldwide's board unanimously recommended the transaction.
- The company cited U.S. tariffs and macroeconomic uncertainty as reasons for the deal.
- Reliance Worldwide's Americas sales fell 4% in fiscal 2026.
Reliance Worldwide has agreed to be acquired by global investment firm Brookfield for approximately $2.9 billion. The Australian plumbing supplies company's board has unanimously recommended the offer, which represents A$4.75 per share. The deal provides a measure of certainty for shareholders amid broader macroeconomic and geopolitical uncertainties, as well as the impact of U.S. tariffs on the company's operations.
Reliance Worldwide, which relies on North America for the majority of its profits, has seen its business impacted by tariffs. Americas sales slipped 4% in fiscal 2026, and adjusted operating earnings fell more than 11% due to tariffs, lower volumes, and increased input costs. Brookfield's offer comes after several previous approaches, with the latest bid valuing the company at A$4.75 per share. Brookfield stated that Reliance Worldwide fits its criteria for a market-leading industrial company with strong brands and growth opportunities.
The agreement includes a "Go Shop" provision, allowing Reliance Worldwide to solicit rival bids and negotiate with other parties for a specified period.