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.
Under the terms of the deal, Brookfield will pay AUD4.75 per Reliance Worldwide share, representing 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.
The acquisition will give Brookfield greater exposure to the US construction and residential housing markets, which account for roughly 60% of Reliance Worldwide’s revenue. The remainder of the company’s sales are generated across Asia Pacific, Europe and the Middle East.
Reliance Worldwide was founded in 1949 and is best known for its SharkBite range of push-to-connect plumbing fittings, which are designed to allow connections without specialist tools.
The transaction adds to Brookfield’s extensive investment footprint in Australia, where the global asset manager has interests spanning real estate, infrastructure and private equity.
Goldman Sachs is advising on the deal, which is subject to customary conditions and approvals.
