Reliance Progresses to Scheme Implementation Deed With Brookfield; Takeover Looks More Likely

Reliance Worldwide produces specialist plumbing and heating products. The firm’s strategy is to expand its share of the push-to-connect fittings category. As a first mover, its SharkBite product range has about 85% market share in the US within the push-to-connect category and is the only brand sold at the two largest home retailers, Lowe’s and Home Depot. Although patents have expired for the original SharkBite and John Guest push-to-connect products, Reliance continues to innovate and has recently introduced SharkBite Max. Marketed as stronger, we think the SharkBite Max can command a price premium over the original product and other push-to-connect brands.