Reliance Worldwide Corporation has agreed to a binding scheme implementation deed with Brookfield Capital Partners for the acquisition of all ordinary shares at US$3.38 per share in cash, equivalent to A$4.75 based on prevailing exchange rates. This agreement caps a structured negotiation process that began with non-binding indicative proposals from Brookfield in April 2026.
The deal progression demonstrates disciplined board negotiation and strategic positioning. Brookfield’s initial proposals ranged from A$4.15 to A$4.50 per share, but following an eight-week due diligence period with access to non-public information, the buyer returned with a materially improved offer of A$4.75 in early August. A subsequent process deed granting four-week exclusivity has culminated in the binding scheme implementation deed announced today.
Valuation metrics reveal substantial premiums being offered to RWC shareholders. The transaction values RWC at approximately US$2.9 billion in enterprise value, representing 12.1 times FY26 EBITDA on a post-AASB16 basis. Against historical trading metrics, the cash consideration delivers a 31.5 percent premium to the undisturbed share price prior to Brookfield’s approach, 32.7 percent above the three-month volume-weighted average price, and 43 percent above the six-month VWAP. These multiples indicate the value creation for shareholders who held through an extended period when the stock traded below intrinsic value.
The transaction structure includes a “Go Shop” provision permitting RWC to solicit alternative proposals until 15 October 2026, protecting shareholder interests by maintaining a window for competing bids to emerge. The offer is denominated in US dollars, aligning transaction currency with RWC’s reporting currency and operational cash flows, though shareholders retain the option to elect Australian dollar settlement at implementation, subject to prevailing exchange rates at completion.
Investors should monitor the Go Shop period for competing proposals while tracking progress on shareholder approval and all necessary regulatory clearances. The scheme maintains commercial flexibility for RWC while providing price certainty for shareholders, with transaction completion targeted for mid-2027 subject to customary closing conditions. This announcement is price sensitive and has been classified as material by the ASX.
View the full ASX announcement (PDF)
About Reliance Worldwide Corporation Limited (ASX: RWC)
Reliance Worldwide Corporation Limited designs and manufactures branded plumbing and heating products for global markets, specializing in water flow, control, and monitoring solutions. The company produces brass fittings, push-to-connect fitting systems, pipes, tubing, and plumbing valves sold under brands including JG Speedfit, HoldRite, and SharkBite. It operates manufacturing and distribution facilities across North America, Europe, and Asia-Pacific regions.
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