Filing Flows › Aramark (ARMK) › Takeover & LBO
Is Aramark (ARMK) a takeover target?
A leveraged buyout at today's price plus 30% ($68.13 a share) would return about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $35.66 a share (−32% against today's $52.41).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $68.13 | today's $52.41 plus 30% |
| × shares | 268.5 million | |
| = Equity value | $18.3B | |
| + Debt refinanced | $6.1B | |
| − Cash | $499M | |
| = Enterprise value | $23.9B | 17.2× EBITDA of $1.4B |
| Fees | $479M | 2% of the price |
| New debt | $7.6B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $16.8B | 69% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $21.4B | $1.5B | $585M | $149M | $7.5B |
| Year 2 | $22.9B | $1.6B | $573M | $222M | $7.3B |
| Year 3 | $24.1B | $1.7B | $556M | $297M | $7.0B |
| Year 4 | $25.2B | $1.8B | $533M | $372M | $6.6B |
| Year 5 | $25.9B | $1.8B | $505M | $446M | $6.2B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 14.2× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $25.7B | |
| − Debt left | $6.2B | |
| = Buyer's equity | $19.6B | |
| Money multiple | 1.17× | on $16.8B put in |
| Buyer's yearly return (IRR) | 3.2% |
Price against return
What the buyer makes at other premiums over today's $52.41; the IRR reaches 20% at $35.66 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $57.65 | 7.1% |
| 20% | $62.89 | 5.0% |
| 30% | $68.13 | 3.2% |
| 40% | $73.37 | 1.5% |
| 50% | $78.61 | −0.1% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $19.8B | |
| EBITDA, last 12 months | $1.4B | 7.0% of revenue |
| Depreciation and amortization | $519M | |
| Capital spending | $478M | |
| Debt | $6.1B | |
| Cash | $499M | |
| Share price | $52.41 | 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 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 26% 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, Aramark would cost about $69.44 a share, $18.6B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $62.89 | $16.9B |
| Median | 32.5% | $69.44 | $18.6B |
| High end (a quarter paid more) | 51.8% | $79.56 | $21.4B |
Aramark's latest quarter
Aramark, Q3 FY26: revenue $5.1B (+9% year over year), operating margin 4.3%, net earnings $97.8M, operating cash flow $117M. The chart follows the revenue to costs, profit and cash.
Questions
Is Aramark being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Aramark?
A leveraged buyout at today's price plus 30% ($68.13 a share) would return about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $35.66 a share (−32% against today's $52.41).
What would a takeover of Aramark 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, Aramark would cost about $69.44 a share, $18.6B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.