Brookfield to buy Reliance Worldwide for US$2.8 billion
Reliance's board has unanimously recommended the all-cash offer to shareholders
Published
Brookfield has agreed to acquire all of Reliance Worldwide Corporation, a manufacturer of plumbing and heating products, in an all-cash deal worth US$3.38 a share.
The transaction values Reliance at an enterprise value of about US$2.8 billion. Reliance's board has unanimously recommended the offer to shareholders.
The deal will be funded through Brookfield's Capital Partners strategy and its affiliate, Brookfield Business Corporation. It is expected to close in the first quarter of 2027, subject to approval from shareholders, regulators and government bodies.
The purchase fits a pattern of large, targeted acquisitions by Brookfield, which recently launched a C$50 billion fund with CPP Investments. Against that scale, the Reliance deal is modest, and the price of US$3.38 a share is not a surprising valuation for a mature industrial business. It points to no material change in Brookfield's investment approach or its capital position.