Brookfield to acquire Reliance Worldwide in all-cash $2.9B deal

On September 16, Reliance Worldwide announced it had agreed to a $2.9 billion buyout from global investment firm Brookfield. The Australian plumbing supplies company is facing challenges due to U.S. tariffs and economic uncertainty. Reliance Worldwide shares surged more than 7% in early trading on Wednesday, reaching their highest level since May of the previous year.

Reliance Worldwide's board unanimously agreed that the transaction is in the best interests of shareholders, according to Reliance Worldwide Chair Russell Chenu. The board also weighed various factors, such as execution risk for future growth and the broader macroeconomic and geopolitical environment, against the certainty of value delivered by the cash consideration.

The company relies heavily on North America for the majority of its profits. CEO Heath Sharp revealed that the business's prospects had been negatively impacted by U.S. tariffs, with Americas sales falling 4% in fiscal 2026. Adjusted operating earnings also declined by more than 11% due to the impact of tariffs, lower volumes, and higher input costs.

Brookfield made three initial approaches in the first half of the year before returning in August with a fourth offer worth A$4.75 a share. Reliance Worldwide is a global, market-leading industrial company with strong brands, loyal customer relationships, and clear opportunities for value creation through investment in operations and continued product expansion, as stated by Brookfield in a separate statement.

The companies included a Go Shop provision, enabling Reliance Worldwide to explore rival bids, review due diligence materials, and negotiate terms.