Brookfield Business Joins Acquisition of Reliance Worldwide
Brookfield Business Corporation (BBUC) is set to participate in the proposed acquisition of plumbing products manufacturer Reliance Worldwide, valued at approximately $2.8 billion excluding lease liabilities. The deal aims for full ownership and will be funded through Brookfield Capital Partners strategy and BBUC’s capital contribution, though specific investment details remain undisclosed. Completion is expected by early 2027 pending regulatory approvals. The acquisition offers potential benefits from Reliance's established brands like SharkBite and its exposure to the repair and remodeling market, which remains resilient despite slowing new construction. Brookfield could leverage industrial expertise to enhance manufacturing efficiency and cash generation. However, challenges include financing commitments of up to $1.65 billion in debt and operating pressures such as weak U.S. and UK markets. Reliance's fiscal 2026 net sales declined slightly by 0.7%, attributed to tariffs and input cost inflation. The company is expanding production facilities in Poland and Mexico, aiming for improved supply flexibility.
Tickers: $BBUC
Topics: Brookfield Business plumbing industry private equity acquisition Reliance Worldwide Corporation