Reliance Worldwide Corporation has signed a binding scheme implementation deed with Brookfield, converting the private-equity group’s August approach into a transaction that values the plumbing-products manufacturer at about US$2.9 billion on an enterprise-value basis.
Under the agreement announced to the ASX on 16 September, Brookfield would acquire 100 per cent of Reliance Worldwide for US$3.38 cash per share. Using the 15 September exchange rate cited in the transaction documents, that equates to approximately A$4.75 a share.
The price represents a premium of about 31.5 per cent to Reliance Worldwide’s undisturbed closing price on 17 August, and about 43 per cent to its six-month volume-weighted average price. The company’s directors have unanimously recommended shareholders vote in favour of the scheme, subject to there being no superior proposal and the independent expert continuing to conclude that the deal is in shareholders’ best interests.
The agreement is the next stage of a process that became public in August. At that time, Reliance Worldwide said Brookfield had progressively lifted earlier approaches from A$4.15 to A$4.75 a share after due diligence and negotiations.
Importantly, the signed scheme deed retains a 30-day go-shop period, running to 15 October. That gives Reliance Worldwide scope to solicit competing interest and provide due diligence access to potential alternative bidders. Break and reverse-break fees are each US$25.3 million.
Reliance Worldwide is one of Australia’s more globally exposed manufacturing businesses. Its portfolio includes SharkBite, John Guest, Cash Acme and HoldRite, with products sold across the Americas, Europe and Asia-Pacific. The transaction therefore represents more than another ASX take-private: it would move a substantial Australian-founded industrial platform, with a large North American footprint, into private ownership.
The deal remains subject to shareholder, court and regulatory approvals, as well as customary conditions. The company expects the scheme booklet to be distributed in November, with implementation targeted for the first quarter of 2027 if approvals are secured.
For suppliers and contractors around Reliance Worldwide, the immediate operational picture is unchanged. The more consequential question will be how Brookfield deploys capital once the company is private — particularly across manufacturing efficiency, product development and expansion in the North American plumbing market.
Image: xing bowen / Unsplash.
