Filing Flows › AZZ (AZZ) › Takeover & LBO
Is AZZ (AZZ) a takeover target?
A leveraged buyout at today's price plus 30% ($174.77 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 $113.03 a share (−16% against today's $134.44). Historically 4.1% of companies with its figures were bought within a year (0.82× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $174.77 | today's $134.44 plus 30% |
| × shares | 30.1 million | |
| = Equity value | $5.3B | |
| + Debt refinanced | $468M | |
| − Cash | $2.0M | |
| = Enterprise value | $5.7B | 15.0× EBITDA of $381M |
| Fees | $115M | 2% of the price |
| New debt | $2.1B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $3.8B | 64% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.9B | $411M | $160M | $114M | $2.0B |
| Year 2 | $2.0B | $439M | $152M | $139M | $1.8B |
| Year 3 | $2.1B | $463M | $141M | $163M | $1.7B |
| Year 4 | $2.2B | $483M | $128M | $186M | $1.5B |
| Year 5 | $2.3B | $498M | $114M | $207M | $1.3B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 11.9× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $5.9B | |
| − Debt left | $1.3B | |
| = Buyer's equity | $4.6B | |
| Money multiple | 1.23× | on $3.8B put in |
| Buyer's yearly return (IRR) | 4.2% |
Price against return
What the buyer makes at other premiums over today's $134.44; the IRR reaches 20% at $113.03 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $147.88 | 9.5% |
| 20% | $161.33 | 6.7% |
| 30% | $174.77 | 4.2% |
| 40% | $188.22 | 2.1% |
| 50% | $201.66 | 0.2% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.7B | |
| EBITDA, last 12 months | $381M | 21.8% of revenue |
| Depreciation and amortization | $93.5M | |
| Capital spending | $77.8M | |
| Debt | $468M | |
| Cash | $2.0M | |
| Share price | $134.44 | on Oct 30, 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 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, AZZ would cost about $188.22 a share, $5.7B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $154.20 | $4.6B |
| Median | 40% | $188.22 | $5.7B |
| High end (a quarter paid more) | 60.2% | $215.37 | $6.5B |
The odds, from history
Historically 4.1% of companies with its figures were bought within a year (0.82× 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.
AZZ's latest quarter
AZZ, Q2 FY27: revenue $487M (+17% year over year), operating margin 17.2%, net earnings $58.5M, operating cash flow $103M. The chart follows the revenue to costs, profit and cash.
Questions
Is AZZ being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy AZZ?
A leveraged buyout at today's price plus 30% ($174.77 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 $113.03 a share (−16% against today's $134.44).
What would a takeover of AZZ 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, AZZ would cost about $188.22 a share, $5.7B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.