Filing Flows › Acuity (AYI) › Takeover & LBO
Is Acuity (AYI) a takeover target?
A leveraged buyout at today's price plus 30% ($422.29 a share) would return about 4% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $282.58 a share (−13% against today's $324.84). Historically 1.8% of companies with its figures were bought within a year (0.36× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $422.29 | today's $324.84 plus 30% |
| × shares | 31.2 million | |
| = Equity value | $13.2B | |
| + Debt refinanced | $697M | |
| − Cash | $636M | |
| = Enterprise value | $13.2B | 15.2× EBITDA of $870M |
| Fees | $264M | 2% of the price |
| New debt | $4.8B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $8.7B | 64% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $5.0B | $929M | $366M | $362M | $4.4B |
| Year 2 | $5.2B | $984M | $338M | $426M | $4.0B |
| Year 3 | $5.5B | $1.0B | $306M | $490M | $3.5B |
| Year 4 | $5.7B | $1.1B | $268M | $553M | $3.0B |
| Year 5 | $5.9B | $1.1B | $226M | $614M | $2.3B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 11.7× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $12.9B | |
| − Debt left | $2.3B | |
| = Buyer's equity | $10.6B | |
| Money multiple | 1.22× | on $8.7B put in |
| Buyer's yearly return (IRR) | 4.0% |
Price against return
What the buyer makes at other premiums over today's $324.84; the IRR reaches 20% at $282.58 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $357.32 | 9.8% |
| 20% | $389.81 | 6.7% |
| 30% | $422.29 | 4.0% |
| 40% | $454.78 | 1.7% |
| 50% | $487.26 | −0.3% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $4.6B | |
| EBITDA, last 12 months | $870M | 18.7% of revenue |
| Depreciation and amortization | $156M | |
| Capital spending | $77.7M | |
| Debt | $697M | |
| Cash | $636M | |
| Share price | $324.84 | 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 6.8% 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 22% 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 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Acuity would cost about $422.29 a share, $13.2B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $363.82 | $11.3B |
| Median | 30% | $422.29 | $13.2B |
| High end (a quarter paid more) | 31% | $425.54 | $13.3B |
The odds, from history
Historically 1.8% of companies with its figures were bought within a year (0.36× the average). Its figures put it in decile 1 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.
Acuity's latest quarter
Acuity, Q4 FY26: revenue $1.2B (+3% year over year), operating margin 18.2%, net earnings $173M, operating cash flow $305M. The chart follows the revenue to costs, profit and cash.
Questions
Is Acuity being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Acuity?
A leveraged buyout at today's price plus 30% ($422.29 a share) would return about 4% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $282.58 a share (−13% against today's $324.84).
What would a takeover of Acuity cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Acuity would cost about $422.29 a share, $13.2B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.