Reliance Worldwide agrees to $4.1B buyout offer

• Reliance Worldwide entered into a process deed with Brookfield Capital Partners for a cash offer of $4.75 per share.
• The proposed acquisition values the company at an enterprise value of approximately $4.1 billion.
• The transaction follows earlier unsolicited indicative proposals received in April and May.

Reliance Worldwide (ASX:RWC) announced that it has entered into a process deed with Brookfield Capital Partners for a cash acquisition proposal valued at approximately $4.1 billion.

The proposal follows earlier unsolicited, non-binding offers of $4.15, $4.25 and $4.50 per share submitted by Brookfield earlier in the year.

Following an eight-week due diligence period, Brookfield submitted a revised cash offer of $4.75 per share.

Under the process deed, Reliance Worldwide Corporation has agreed to exclusivity restrictions and no-shop terms for four weeks until Sept. 15.

Both parties intend to work towards negotiating a formal scheme implementation deed that will include a 30-day go-shop provision allowing alternative proposals.

Following the announcement, the Reliance Worldwide share price was down at $3.61.

The company operates globally as a manufacturer and supplier of plumbing products, serving commercial and residential sectors.