The acquistion of Holman Industries for -$160m, which will be debt funded from existing committed facilities, appears to be in-line with Reliance Worldwide's strategy, notes Morgan Stanley.

Holman is the leading manufacturer of PVC plumbing fittings in the Australian market, serving the Drain, Waste and Vent (DWV) water-out end market, explains the broker.

Based on Reliance's net sales in FY23, and Holman's sales over the same period, the analysts expect a doubling of annual net external sales in the APAC region to $360m.

Equal-weight. Target $4.20. Industry view: In-Line.

Sector: Capital Goods.

Target price is $4.20.Current Price is $4.33. Difference: ($0.13) - (brackets indicate current price is over target). If RWC meets the Morgan Stanley target it will return approximately -3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2024 Acquisdata Pty Ltd., source FN Arena