Australia's Reliance Worldwide Corporation announced on Tuesday that Brookfield Capital Partners LLC has increased its cash offer to acquire the plumbing solutions company. The new proposal values Reliance at an enterprise value of A$4.1 billion, or approximately $2.91 billion. Reliance confirmed it has signed a process deed with Brookfield to move the acquisition proposal forward.
The sweetened bid follows a series of previous unsolicited and non-binding offers made by Brookfield earlier this year. According to Reliance, Brookfield previously proposed share prices of A$4.15 in April, followed by A$4.25 and A$4.50 in May. The latest offer has been raised to A$4.75 per share in cash for all outstanding ordinary shares.
The current agreement between the two firms includes a "no-shop" period lasting four weeks, from August 17 to September 15. During this time, Reliance is prohibited from soliciting or discussing competing offers and is not required to provide information to other potential bidders. Reliance has engaged Goldman Sachs and Oaktower Partnership to serve as financial advisers during the process.
The scale of the transaction involves a total enterprise value of A$4.1 billion ($2.91 billion). For the individual shareholder, the difference between the initial April bid and the current August offer is A$0.60 per share. If the deal proceeds, the primary concrete change for shareholders will be the conversion of their equity into cash once the transaction is finalized. During the four-week exclusivity period ending September 15, the company is restricted from entertaining other bids, effectively pausing market competition for the firm’s assets.
A successful takeover would remove Reliance Worldwide from the public market, potentially setting a precedent for private equity acquisitions within the Australian industrial sector. The agreement stipulates that if a formal scheme implementation deed—a legal contract outlining the terms of a merger—is signed, Reliance would then be granted a 30-day window to seek or negotiate potentially better offers. Currently, the immediate focus is the completion of the exclusivity period on September 15, after which the parties will determine if they will enter a binding implementation agreement.
Reliance has appointed Goldman Sachs and Oaktower Partnership as financial advisers to evaluate the proposal. The finalization of any deal remains subject to the negotiation of a formal implementation deed and subsequent regulatory or shareholder approvals, the specific dates for which have not yet been reported.