Rheem Mfg. Co. and Paloma Industries have reached a definitive agreement to acquire the Australasian water heater business of Southcorp Holdings Ltd. The acquisition includes Southcorp.'s water heater businesses in its home base of Australia, as well as in New Zealand, plus its solar water heater company, Solahart, also based in Australia. The transaction also includes Southcorp.'s interest in Hotstream, a joint venture in China, but does not include the acquisition of Southcorp.'s American Water Heater Co., based in Johnson City, TN.