Melbourne-based Reliance Worldwide could be bought out by Brookfield Asset Management in a $US2.8 billion ($3.9 billion) deal that would see it delisted from the stock exchange and taken private.
The deal includes what's known as a "go shop" provision, which gives Reliance's board until October 15 to solicit alternative offers from other parties.
Brookfield is offering shareholders $US3.38 ($4.75) per share, after Reliance's board rejected three lower offers of $4.15, $4.25 and $4.50 per share in April and May.
The latest offer is a premium of 43 per cent to Reliance's average share price over the past six months, representing a potential bonanza for its shareholders.
Its shares jumped 4.3 per cent to $4.52 on Wednesday, before falling back to $4.50.
Reliance chairman Russell Chenu confirmed the "go shop" process gave the board the chance to explore broader buyer interest and shareholders would be fully informed.
Brookfield has the right to match any superior counteroffer.
If shareholders agree to Brookfield's offer, the transaction is expected to close in the first quarter of 2027.
Reliance was founded in 1949 in Brisbane as a small tool shop, Reliance Manufacturing Company, which sold innovative valve systems to improve the safety of hot water heaters.
The business evolved over the years through various owners and acquisitions, eventually listing on the ASX in 2016.
It has around 2800 employees across 58 global locations and makes most of its money in North America.
It sells push-to-connect plumbing fittings and water control products under the brands SharkBite, John Guest, Cash Acme and RMC Reliance.
It's also the biggest maker of push-to-connect behind the wall plumbing gear in the world.
Reliance has been caught up in the US tariff regime imposed on goods exported from Australia to the US, which it has said poses a real challenge and has taken up a significant amount of management time.
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