Brookfield Asset Management has launched a A$4.1 billion ($2.9 billion) cash bid to acquire Australia’s Reliance Worldwide, the plumbing and building products supplier said on Thursday.
The offer, which values Reliance at 5.6 times its 2024 revenue, represents a 22% premium to the company’s closing share price on Wednesday. Reliance Worldwide confirmed receipt of the non-binding proposal and said its board would review the bid in consultation with financial and legal advisers.
Brookfield, a global alternative asset manager, did not disclose further details about its plans for Reliance Worldwide following a potential acquisition. The company operates in the residential and commercial building products sector, serving markets in Australia, North America, and Europe.
Reliance Worldwide’s shares surged 20% in early trading on Thursday, reflecting investor optimism about the bid. The company has not yet responded publicly to the proposal beyond confirming its receipt.
The transaction remains subject to due diligence, regulatory approvals, and Reliance Worldwide’s board recommendation. If completed, the deal would mark one of the largest private equity takeovers of an Australian-listed company in recent years.
