Filing Flows › Cardinal Health (CAH) › Takeover & LBO
Is Cardinal Health (CAH) a takeover target?
A leveraged buyout does not work for Cardinal Health on its latest figures: its EBITDA margin is only 1.4% ($3.6B on revenue of $254.2B), too thin to carry buyout debt. Historically 2.4% of companies with its figures were bought within a year (0.48× the average).
Why a leveraged buyout does not fit
Cardinal Health kept 1.4% of its revenue as EBITDA over the last 12 months ($3.6B on $254.2B). A margin that thin cannot carry the debt a leveraged buyout needs — a small dip in sales would leave nothing for interest — so the model gives no buyout price.
What a takeover could cost
Takeovers in its sector paid a median premium of 35% over the share price before the deal (the middle half 22% to 45%), according to the 15 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Cardinal Health would cost about $361.56 a share, $85.7B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 22% | $326.74 | $77.4B |
| Median | 35% | $361.56 | $85.7B |
| High end (a quarter paid more) | 45% | $388.34 | $92.0B |
The odds, from history
Historically 2.4% of companies with its figures were bought within a year (0.48× 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.
Cardinal Health's latest quarter
Cardinal Health, Q1 FY27: revenue $67.5B (+6% year over year), operating margin 1.1%, net earnings $556M, operating cash flow $1.4B. The chart follows the revenue to costs, profit and cash.
Questions
Is Cardinal Health being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Cardinal Health?
A leveraged buyout does not work for Cardinal Health on its latest figures: its EBITDA margin is only 1.4% ($3.6B on revenue of $254.2B), too thin to carry buyout debt. A margin that thin leaves almost nothing to pay interest with, so buyout debt does not fit.
What would a takeover of Cardinal Health cost?
Takeovers in its sector paid a median premium of 35% over the share price before the deal (the middle half 22% to 45%), according to the 15 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Cardinal Health would cost about $361.56 a share, $85.7B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.