Brookfield Asset Management has agreed to acquire Australian plumbing products manufacturer Reliance Worldwide Corporation in an all-cash transaction valuing the company at approximately AUD4.1bn ($2.9bn), according to Private Equity Wire.
Under the terms of the deal, Brookfield will pay AUD4.75 per Reliance Worldwide share. The offer represents a 32% premium to the company’s closing share price on 17 August, before the two companies first disclosed that they were in discussions over a potential transaction, according to Private Equity Wire.
Deal terms and pricing
Brookfield’s agreement covers an all-cash transaction valuing Reliance Worldwide Corporation at approximately AUD4.1bn ($2.9bn). Brookfield’s agreed price is AUD4.75 per Reliance Worldwide share. The AUD4.75 per share price is described as a 32% premium to Reliance Worldwide’s closing share price on 17 August, before the companies disclosed they were in discussions over a potential transaction, according to Private Equity Wire.
Goldman Sachs is advising on the deal. The transaction is subject to customary conditions and approvals.
Business profile and geographic revenue exposure
Reliance Worldwide Corporation is an Australian plumbing products manufacturer. Reliance Worldwide was founded in 1949.
Reliance Worldwide is best known for its SharkBite range of push-to-connect plumbing fittings. The SharkBite fittings are designed to allow connections without specialist tools.
The acquisition will give Brookfield greater exposure to the US construction and residential housing markets. The US construction and residential housing markets account for roughly 60% of Reliance Worldwide’s revenue. The remainder of Reliance Worldwide’s sales are generated across Asia Pacific, Europe and the Middle East, according to Private Equity Wire.
Brookfield’s Australia footprint
The transaction adds to Brookfield’s extensive investment footprint in Australia. Private Equity Wire reported that Brookfield is a global asset manager with interests in Australia spanning real estate, infrastructure and private equity.
The acquisition of Reliance Worldwide Corporation is structured as an all-cash transaction and is valued at approximately AUD4.1bn ($2.9bn). The deal is being advised by Goldman Sachs and is subject to customary conditions and approvals, according to Private Equity Wire.
