Filing Flows › Acme United (ACU) › Takeover & LBO
Is Acme United (ACU) a takeover target?
A leveraged buyout at today's price plus 30% ($80.80 a share) would return about 0% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $47.31 a share (−24% against today's $62.15). Historically 4.8% of companies with its figures were bought within a year (0.95× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $80.80 | today's $62.15 plus 30% |
| × shares | 4.1 million | |
| = Equity value | $335M | |
| + Debt refinanced | $22.6M | |
| − Cash | $5.0M | |
| = Enterprise value | $352M | 16.2× EBITDA of $21.7M |
| Fees | $7.0M | 2% of the price |
| New debt | $119M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $240M | 67% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $229M | $23.5M | $9.1M | −$389K | $120M |
| Year 2 | $244M | $25.0M | $9.2M | $298K | $120M |
| Year 3 | $257M | $26.4M | $9.1M | $1.0M | $119M |
| Year 4 | $268M | $27.5M | $9.1M | $1.7M | $117M |
| Year 5 | $276M | $28.4M | $8.9M | $2.4M | $114M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 12.7× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $359M | |
| − Debt left | $114M | |
| = Buyer's equity | $245M | |
| Money multiple | 1.02× | on $240M put in |
| Buyer's yearly return (IRR) | 0.4% |
Price against return
What the buyer makes at other premiums over today's $62.15; the IRR reaches 20% at $47.31 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $68.37 | 5.5% |
| 20% | $74.58 | 2.8% |
| 30% | $80.80 | 0.4% |
| 40% | $87.01 | −1.7% |
| 50% | $93.22 | −3.5% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $212M | |
| EBITDA, last 12 months | $21.7M | 10.3% of revenue |
| Depreciation and amortization | $7.2M | |
| Capital spending | $10.6M | |
| Debt | $22.6M | |
| Cash | $5.0M | |
| Share price | $62.15 | on Oct 9, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 8.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 24% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Acme United would cost about $87.01 a share, $360M for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $71.29 | $295M |
| Median | 40% | $87.01 | $360M |
| High end (a quarter paid more) | 60.2% | $99.56 | $412M |
The odds, from history
Historically 4.8% of companies with its figures were bought within a year (0.95× the average). Its figures put it in decile 5 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Acme United's latest quarter
Acme United, Q3 2026: revenue $58.0M (+18% year over year), operating margin 7.7%, net earnings $3.4M. The chart follows the revenue to costs, profit and cash.
Questions
Is Acme United being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Acme United?
A leveraged buyout at today's price plus 30% ($80.80 a share) would return about 0% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $47.31 a share (−24% against today's $62.15).
What would a takeover of Acme United cost?
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Acme United would cost about $87.01 a share, $360M for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.