Brookfield's A$4.1B RWC Bid
Reliance Worldwide Enters Exclusive Period with Brookfield on Potential A$4.1 Billion Takeover
Key Points
Adjusted net sales rose modestly in constant currency, signaling underlying growth despite FY26 net sales being flat on a reported basis.
Adjusted EBITDA fell 12.8% to US$242.1 million and the EBITDA margin tightened to 18.5% from 21.1%, as higher copper costs, US tariffs and softer demand pressured earnings while price increases and a US$10 million cost save effort provided some offset.
US$103.3 million in post-tax one-off charges from rationalising the Australian metals footprint (closing brass casting, forging and machining operations in Melbourne and smaller sites) pushed reported NPAT to US$6.3 million; excluding charges, adjusted NPAT was US$125.1 million.
Brookfield Capital Partners launched an unsolicited cash offer of A$4.75 per share, valuing RWC at about A$4.1 billion, with a four-week exclusivity period for due diligence and a 30-day go-shop window for rival bids.
Strategic actions include restructuring Asia Pacific operations and advancing growth projects such as commissioning a new assembly facility in Poland and preparing a new plant in Mexico to mitigate tariff impacts and bolster cost competitiveness.
Brookfield Capital Partners has launched an unsolicited all-cash takeover bid for Australian plumbing fittings maker Reliance Worldwide Corp., offering A$4.75 per share and valuing the company at about A$4.1 billion, according to Bloomberg Law. The bid triggered a four-week exclusivity period for due diligence and a 30-day go-shop window, meaning rival bidders could still emerge. The board warned there is no certainty a deal will proceed.
The offer lands as Reliance Worldwide reports a bruising FY26 result. Reported net profit after tax collapsed to just US$6.3 million, down from much higher levels a year ago, dragged down by US$103.3 million in one-off charges from shutting brass casting, forging, and machining plants in Melbourne, according to Grafa.
Brookfield's Bid Values RWC at A$5.1 Billion Enterprise Value
Brookfield's offer of A$4.75 per share is an all-cash deal. Bloomberg Law reported the equity value sits at roughly A$4.1 billion, with total enterprise value — including debt — reaching approximately A$5.1 billion. Reliance Worldwide agreed to enter exclusivity, giving Brookfield four weeks to complete due diligence before any binding agreement is signed.
A 30-day go-shop period would follow, allowing the board to solicit competing offers. Market Watch reported that Reliance Worldwide has agreed to the A$3.55 billion equity takeover by Brookfield's private equity arm. Analysts currently rate the stock a Buy with a A$4.25 price target, suggesting the bid carries a premium. The board has not yet recommended the offer.
FY26 Earnings Hit Hard by Tariffs, Copper Costs, and Restructuring
Reliance Worldwide's FY26 results were weak across the board. Net sales came in at US$1,305.6 million, essentially flat year over year. Adjusted EBITDA — earnings before interest, tax, depreciation, and amortisation — fell 12.8% to US$242.1 million. The EBITDA margin shrank to 18.5% from 21.1% a year earlier, according to Grafa.
Three forces drove the margin squeeze: rising copper costs, softer demand in key markets, and US tariffs. The company tried to fight back with price increases and a US$10 million cost-saving push. Those moves helped but were not enough to fully offset the pressure. Adjusted net profit fell 15.3% to US$125.1 million once one-off charges are stripped out.
Melbourne Plant Closures Behind the US$103 Million Charge
The single biggest hit to reported earnings came from restructuring Australia's metals business. Reliance Worldwide closed its brass casting, forging, and machining operations in Melbourne, along with several smaller sites. That move generated US$103.3 million in post-tax one-off charges. Those charges pushed reported net profit after tax to just US$6.3 million for the full year.
Despite the heavy charges, the company generated US$263.4 million in operating cash flow and cut net debt to US$243.4 million. That strong cash conversion gives Reliance Worldwide — or a future owner — financial room to invest. Management is now commissioning a new assembly plant in Poland and preparing a new facility in Mexico to cut tariff exposure and lower costs.
Management Targets Growth Even as Takeover Talks Unfold
Despite the weak FY26 result, management set an optimistic outlook. The company is targeting mid-to-high single-digit sales growth, with profit margins expected to hold roughly steady. Constant-currency sales — which strip out foreign exchange swings — rose modestly, signalling that underlying demand is not falling apart.
The restructuring of Asia Pacific operations is ongoing. New plants in Poland and Mexico are central to the efficiency drive. Whether management gets to execute that plan independently depends on what happens next in the Brookfield talks. The go-shop window means another buyer could still step in with a higher offer, according to Bloomberg Law.
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