Brookfield Asset Management has sealed an all-cash acquisition agreement for Reliance Worldwide, valuing the plumbing fittings manufacturer at an enterprise worth of $2.9 billion. The Australian-listed company, which operates domestically and across the United States, Canada, and Mexico, announced on Wednesday that Brookfield settled on a purchase price of $3.38 per share following a four-week period of exclusive due diligence.

Reliance stated that its board has unanimously recommended shareholders accept the offer, with investors given the choice of receiving payment in US dollars or the equivalent of A$4.75 per share. In early Wednesday trading, the stock climbed nearly 5% to A$4.54.

Anuj Ranjan, Chief Executive Officer of Brookfield's private equity group, said the firm views Reliance Worldwide as a globally leading industrial business with significant value-creation potential. "Brookfield's worldwide operational expertise in the industrial sector and its deep ties to the US housing ecosystem position us well to support Reliance's next phase of growth and drive long-term success," Ranjan commented.

Brookfield first approached Reliance Worldwide back in April. At that time, the stock had tumbled roughly 50% over an 18-month stretch, hammered by uncertainty surrounding US tariff policies and high interest rates that suppressed new-home demand a key driver of plumbing fittings orders. Before Reliance opened its books for an eight-week investigation, Brookfield raised its bid three times, lifting the offer from A$4.15 to A$4.50. The firm then bumped the proposal to A$4.75 per share, a move that persuaded Reliance to grant the four-week exclusive due diligence window, which wrapped up in mid-September.

Last month, Reliance Worldwide reported its fiscal results, revealing a 0.7% decline in annual revenue for the twelve months ending June. The company narrowly avoided a net loss, cushioned by a $103.3 million one-time gain from restructuring its Australian manufacturing operations. Reliance expects the acquisition to be finalized by the end of March next year.