Brookfield to acquire Reliance Worldwide in $2.9 billion all-cash deal

Reliance board unanimously backs the $3.38-per-share cash offer

Brookfield Asset Management has agreed to acquire Australia-listed Reliance Worldwide in an all-cash transaction valued at US$2.9 billion, the companies said Wednesday.

Under the terms, Reliance shareholders can opt to receive either US$3.38 per share or A$4.75 per share. Reliance’s board unanimously recommended that shareholders accept the offer.

Reliance Worldwide manufactures plumbing supplies. It is listed in Australia and operates domestically and in countries including the United States, Canada and Mexico.

The company’s shares traded at A$4.33 ahead of Wednesday’s market open in Sydney.

Brookfield firmed its proposal after four weeks of exclusive due diligence, the companies said.

Anuj Ranjan, chief executive of Brookfield’s private-equity group, characterized Reliance as “a global, market-leading industrial company with value creation opportunities.”

“Brookfield’s global operating expertise in industrials and the U.S. housing ecosystem positions us well to support Reliance in its next phase of growth and over the long term,” Ranjan said.

Stuart Condie reported for The Wall Street Journal from Sydney.