Stock Markets September 15, 2026 08:42 PM

Reliance Worldwide Shares Surge as Brookfield Agrees A$4.75-Per-Share Takeover

Brookfield deal values Australian plumbing-products group at about A$4.1 billion on an enterprise-value basis; shares hit highest level in over a year

By Derek Hwang
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Reliance Worldwide Corp shares climbed to their highest level since August 2025 after Brookfield offered A$4.75 a share in cash, valuing the Australian plumbing-products manufacturer at roughly A$4.1 billion including debt. The proposal follows multiple earlier approaches and comes amid a period of revenue and profit pressure for Reliance Worldwide.

Reliance Worldwide Shares Surge as Brookfield Agrees A$4.75-Per-Share Takeover
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Key Points

  • Brookfield has offered A$4.75 per share in cash, valuing Reliance Worldwide at about A$4.1 billion on an enterprise-value basis.
  • Reliance Worldwide’s shares rose 6.5% to A$4.61, their highest level since August 18, 2025; the S&P/ASX 200 rose 0.3% the same day.
  • The company reported FY26 revenue of US$1.31 billion, with adjusted EBITDA down 12.8% to US$242.1 million and adjusted net profit down 15.3% to US$125.1 million, driven by U.S. tariffs, higher copper costs, weaker end markets and cost inflation.

Shares of Reliance Worldwide Corp (ASX:RWC) rose sharply on Wednesday after Brookfield put forward a cash offer that values the plumbing-products maker at about A$4.1 billion on an enterprise-value basis, including debt. The stock increased 6.5% to A$4.61, marking its highest closing level since August 18, 2025, while the S&P/ASX 200 gained 0.3% on the session.


Deal terms and process

Brookfield has offered A$4.75 per share in cash. That price follows a sequence of earlier approaches at A$4.15, A$4.25 and A$4.50 per share. Reliance Worldwide’s board has given unanimous endorsement to the A$4.75 proposal. Under the terms, shareholders may elect to receive the cash consideration in either Australian or U.S. dollars.

The takeover bid emerged after four approaches this year. Brookfield submitted its A$4.75 offer in early August, following approximately an eight-week due-diligence review. Reliance Worldwide provided Brookfield exclusivity through September 15 while the parties worked toward a binding scheme implementation deed. The agreement also incorporates a 30-day go-shop provision that allows Reliance Worldwide to solicit and negotiate competing proposals after signing; that clause was included as part of the earlier process deed.


Financial and operational backdrop

The transaction comes after a challenging period for Reliance Worldwide. For fiscal 2026 the company reported revenue of US$1.31 billion, a decline of 0.7% year-on-year. Adjusted EBITDA fell 12.8% to US$242.1 million, while adjusted net profit decreased 15.3% to US$125.1 million. Management attributed the softer results in part to U.S. tariffs, higher copper costs, weaker end markets and general cost inflation.

Brookfield’s investment rationale highlighted Reliance Worldwide’s international plumbing-products business and its exposure to the U.S. market. Reliance Worldwide’s portfolio includes the SharkBite, Cash Acme and John Guest brands, and the company operates across North America, Australia, Europe and other markets.


Operational changes and restructuring

Reliance Worldwide has been reshaping its manufacturing footprint. Among the changes under way is the planned closure of brass casting, forging and machining operations in Melbourne. The company has positioned those moves as part of broader operational restructuring during a period of margin pressure.


Market reaction and next steps

Investors pushed the stock to its one-year high on the combination of the takeover premium and the certainty provided by a unanimous board recommendation. The deal now moves through the required regulatory and shareholder processes, with the go-shop window potentially allowing competing proposals to surface in the short term.

Given the mix of financial underperformance in FY26 and the board-supported offer, the transaction will be watched closely by market participants and by stakeholders in plumbing-product manufacturing and related supply chains.

Risks

  • Deal uncertainty from the 30-day go-shop provision, which allows Reliance Worldwide to solicit and negotiate alternative proposals after signing the scheme implementation deed - may introduce competing offers or delay closure.
  • Ongoing cost pressures and market weakness: FY26 results show declines in revenue, EBITDA and net profit linked to U.S. tariffs, higher copper costs, weaker end markets and inflation - these factors could continue to affect the business and its margins.
  • Operational execution risk from manufacturing restructuring, including the planned closure of brass casting, forging and machining operations in Melbourne, which may present transitional challenges for production and supply.

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