Following due diligence, Brookfield Capital Partners and Reliance have entered into a scheme implementation deed for Brookfield to acquire 100% of Reliance for USD 3.38 cash per share. Reliance may solicit takeover proposals from other parties until Oct. 15. 2026.
RWC is trading within a range we consider fairly valued.
Price
A$4.74
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say
Bulls
We estimate that about three-fourths of revenue is from the repair, renovation, and improvement category, which is less exposed to cyclicality in the housing market.
Bears
Higher interest rates leading to a protracted downturn in housing activity in all of Reliance’s operating regions could weigh on group earnings.
Reliance manufactures behind-the-wall plumbing products, which include fittings, pipes, valves, fluid dispensers, pipe systems, and appliance connectors. Its main segment is the US, which comprises about two-thirds of our midcycle EBITDA estimates. Other segments include EMEA and Asia-Pacific, which contribute about 15% and 20%, respectively, of our midcycle EBITDA estimates. The firm is best known for its push-to-connect products, including the brands SharkBite in the US and John Guest in the United Kingdom. Reliance’s primary target segment is the do-it-yourself market. Smaller sales segments include residential and commercial construction, and hot water system manufacturers, which use some Reliance products in manufacturing.