Filing Flows › Abercrombie & Fitch (ANF) › Takeover & LBO
Is Abercrombie & Fitch (ANF) a takeover target?
A leveraged buyout at today's price plus 30% ($195.57 a share) would return about 1% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 4.0% of companies with its figures were bought within a year (0.79× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $195.57 | today's $150.44 plus 30% |
| × shares | 44.1 million | |
| = Equity value | $8.6B | |
| + Debt refinanced | $0 | |
| − Cash | $638M | |
| + Other claims | $15.1M | preferred stock, minority interests |
| = Enterprise value | $8.0B | 8.9× EBITDA of $897M |
| Fees | $160M | 2% of the price |
| New debt | $4.9B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $3.2B | 39% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $5.6B | $939M | $377M | $161M | $4.8B |
| Year 2 | $5.8B | $980M | $365M | $191M | $4.6B |
| Year 3 | $6.1B | $1.0B | $350M | $222M | $4.4B |
| Year 4 | $6.3B | $1.1B | $333M | $253M | $4.1B |
| Year 5 | $6.5B | $1.1B | $314M | $284M | $3.8B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 6.7× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $7.3B | |
| − Debt left | $3.8B | |
| = Buyer's equity | $3.4B | |
| Money multiple | 1.07× | on $3.2B put in |
| Buyer's yearly return (IRR) | 1.3% |
Price against return
What the buyer makes at other premiums over today's $150.44.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $165.48 | 11.3% |
| 20% | $180.53 | 6.2% |
| 30% | $195.57 | 1.3% |
| 40% | $210.62 | −2.5% |
| 50% | $225.66 | −5.6% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $5.3B | |
| EBITDA, last 12 months | $897M | 16.8% of revenue |
| Depreciation and amortization | $165M | |
| Capital spending | $253M | |
| Debt | $0 | |
| Cash | $638M | |
| Share price | $150.44 | on Nov 6, 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 4.7% 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 28% 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 on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Abercrombie & Fitch would cost about $199.33 a share, $8.8B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $180.53 | $8.0B |
| Median | 32.5% | $199.33 | $8.8B |
| High end (a quarter paid more) | 51.8% | $228.37 | $10.1B |
The odds, from history
Historically 4.0% of companies with its figures were bought within a year (0.79× the average). Its figures put it in decile 4 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.
Abercrombie & Fitch's latest quarter
Abercrombie & Fitch, Q2 FY27: revenue $1.3B (+5% year over year), operating margin 19.9%, net earnings $184M, operating cash flow $269M. The chart follows the revenue to costs, profit and cash.
Questions
Is Abercrombie & Fitch being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Abercrombie & Fitch?
A leveraged buyout at today's price plus 30% ($195.57 a share) would return about 1% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Abercrombie & Fitch cost?
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Abercrombie & Fitch would cost about $199.33 a share, $8.8B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.