Brookfield has submitted a revised cash proposal to acquire Australian plumbing-products manufacturer Reliance Worldwide. The offer values the company’s equity at A$3.6 billion and the business at A$4.1 billion including debt, preserving the distinction between equity value and enterprise value.
The proposal offers A$4.75 for each Reliance share, a 31.6% premium to the previous closing price of A$3.61. It is equivalent to 12.1 times Reliance’s forecast earnings before interest, tax, depreciation and amortisation for the 2026 financial year.
This is not yet a binding completed takeover. Reliance has entered an agreement to progress the proposal, but the transaction remains subject to due diligence and approval by Brookfield’s investment committee, with no certainty that those conditions will produce a signed implementation agreement.
Brookfield had made earlier unsolicited, non-binding and indicative proposals of A$4.15, A$4.25 and A$4.50 per share in April and May. Access to information over an eight-week period and subsequent negotiations produced the improved A$4.75 proposal submitted in early August.
The contemplated structure includes a 30-day “go shop” period after signing, during which Reliance could seek an alternative transaction and provide information to another bidder. The current progress agreement also contains exclusivity restrictions from August 17 to September 15, while a break could require Reliance to reimburse Brookfield up to US$5 million of costs.
AustralianSuper owns just over 11% of Reliance and could be influential in any shareholder vote. The pension investor has not publicly stated whether it supports or opposes the proposal, so possible resistance over price remains a market consideration rather than a confirmed position.
Reliance reported a 0.7% fall in annual net sales to US$1.3 billion for the year ended June 30. Adjusted net profit dropped 15.3% to US$125.1 million, while statutory net profit fell 95% to US$6.3 million amid US tariffs, higher input costs and weaker demand in the US and UK.
The company’s SharkBite push-fit plumbing system is a central strategic asset, but the bid’s outcome will be determined by price, diligence, financing and shareholder support. Reliance is being advised by Goldman Sachs and Oaktower Partnership; until approvals and definitive documents are secured, A$4.75 remains a proposal rather than an assured sale.
