Filing Flows › Bath & Body Works (BBWI) › Takeover & LBO
Is Bath & Body Works (BBWI) a takeover target?
A leveraged buyout at today's price plus 30% ($27.80 a share) would return about 11% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $20.96 a share (−2% against today's $21.39). Historically 5.3% of companies with its figures were bought within a year (1.06× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $27.80 | today's $21.39 plus 30% |
| × shares | 202.0 million | |
| = Equity value | $5.6B | |
| + Debt refinanced | $3.6B | |
| − Cash | $794M | |
| + Other claims | $2.0M | preferred stock, minority interests |
| = Enterprise value | $8.4B | 5.8× EBITDA of $1.5B |
| Fees | $169M | 2% of the price |
| New debt | $5.5B | 3.8× EBITDA at 7.65% a year; the limit that binds: 65% of the price |
| Buyer's own money | $3.1B | 36% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $7.1B | $1.4B | $420M | $616M | $4.9B |
| Year 2 | $7.0B | $1.4B | $372M | $646M | $4.2B |
| Year 3 | $7.0B | $1.4B | $323M | $686M | $3.5B |
| Year 4 | $7.1B | $1.4B | $271M | $736M | $2.8B |
| Year 5 | $7.4B | $1.5B | $214M | $801M | $2.0B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 4.9× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $7.3B | |
| − Debt left | $2.0B | |
| = Buyer's equity | $5.3B | |
| Money multiple | 1.69× | on $3.1B put in |
| Buyer's yearly return (IRR) | 11.1% |
Price against return
What the buyer makes at other premiums over today's $21.39; the IRR reaches 20% at $20.96 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $23.52 | 16.6% |
| 20% | $25.66 | 13.8% |
| 30% | $27.80 | 11.1% |
| 40% | $29.94 | 8.4% |
| 50% | $32.08 | 5.6% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $7.2B | |
| EBITDA, last 12 months | $1.5B | 20.2% of revenue |
| Depreciation and amortization | $246M | |
| Capital spending | $242M | |
| Debt | $3.6B | |
| Cash | $794M | |
| Share price | $21.39 | 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 -2.2% 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 20% 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, Bath & Body Works would cost about $28.34 a share, $5.7B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $25.66 | $5.2B |
| Median | 32.5% | $28.34 | $5.7B |
| High end (a quarter paid more) | 51.8% | $32.46 | $6.6B |
The odds, from history
Historically 5.3% of companies with its figures were bought within a year (1.06× the average). Its figures put it in decile 6 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.
Bath & Body Works' latest quarter
Bath & Body Works, Q2 FY27: revenue $1.5B (-2% year over year), operating margin 14.3%, net earnings $118M, operating cash flow $72.0M. The chart follows the revenue to costs, profit and cash.
Questions
Is Bath & Body Works being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Bath & Body Works?
A leveraged buyout at today's price plus 30% ($27.80 a share) would return about 11% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $20.96 a share (−2% against today's $21.39).
What would a takeover of Bath & Body Works 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, Bath & Body Works would cost about $28.34 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.