Full Breakdown
Brookfield to Acquire Reliance Worldwide in $2.8-$2.9 B All-Cash Deal
By Drooid · · How we work
Core Transaction Details
Brookfield, a global investment firm, has agreed to purchase 100 % of Reliance Worldwide Corp., a manufacturer of plumbing and heating solutions. The all-cash offer is $3.38 per share (U.S.) or A$4.75 per share, valuing the company at roughly US$2.8 billion (Brookfield press release, BNN Bloomberg) and about US$2.9 billion including debt (Investing, Biggo). The deal is subject to shareholder, regulatory and government approvals and is expected to close in the first quarter of 2027.
Background & Context
Reliance has been pressured by U.S. tariffs, higher copper costs and weaker end-markets, which reduced FY 2026 adjusted operating earnings by more than 11 %. Earlier in 2026 Brookfield made three rejected offers of A$4.15, A$4.25 and A$4.50 per share before presenting the successful fourth offer in August. The announcement sparked a share rally, with the stock rising as much as 7 % before settling 3.5 % higher (Biggo, The Globe and Mail).
Timeline
- August 17 2026 – Offer set at $3.38 per share, a ~32 % premium to the closing price that day.
- August 2026 – Brookfield completes an eight-week due-diligence process and submits the fourth offer (Biggo, Investing).
- September 15 2026 – Exclusivity period granted to Brookfield ends.
- October 15 2026 – Go-shop provision allows Reliance’s board to seek rival bids until this deadline.
- First quarter 2027 – Anticipated closing, pending approvals.
Data & Statistics
- Valuation: US$2.8 billion (Brookfield press release, BNN Bloomberg) vs. US$2.9 billion including debt (Investing, Biggo).
- Share premium: 32 % over the August 17 price; 43 % over the six-month average price.
- FY 2026 results: Revenue US$1.31 billion (-0.7 %); adjusted EBITDA US$242.1 million (-12.8 %); adjusted net profit US$125.1 million (-15.3 %).
- Market reaction: Shares rose 6.5 % to A$4.61, the highest level since August 18 2025, before closing 3.5 % higher at A$4.48 (Investing, The Globe and Mail).
Official Statements & Responses
Brookfield’s private-equity chief Anuj Ranjan said the firm views Reliance as a strong industrial business with solid brands and growth potential through operational investment and product expansion (Brookfield press release).
Reliance Chair Russell Chenu stated the board unanimously believes the transaction is in the best interests of shareholders, highlighting the certainty of cash versus the execution risk of a standalone growth plan (Reliance statement reported by Biggo and The Globe and Mail).
Brookfield indicated the purchase will be funded through its Brookfield Capital Partners strategy and its affiliate Brookfield Business Corporation (Brookfield press release).
Conflicting Reports & Gaps
- Enterprise value: Reported as US$2.9 billion including debt (Investing, Biggo) and as US$2.8 billion (Brookfield press release, BNN Bloomberg).
- Premium calculation: One source cites a 32 % premium to the August 17 closing price; another cites a 43 % premium to the six-month average price. The basis for each premium is not reconciled in public filings.
- Pension-fund stance: AustralianSuper declined comment; Aware Super did not respond, leaving uncertainty about their voting intentions.
What’s Next
Shareholders will vote after the go-shop window closes on October 15. Approval requires a majority vote and regulatory clearance. If approved, Reliance will be delisted from the Australian Securities Exchange and become a privately held subsidiary of Brookfield in the first quarter of 2027.