Filing Flows › Cabot (CBT) › Takeover & LBO
Is Cabot (CBT) a takeover target?
A leveraged buyout at today's price plus 30% ($96.76 a share) would return a loss of about 6% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $50.50 a share (−32% against today's $74.43). Historically 3.9% of companies with its figures were bought within a year (0.77× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $96.76 | today's $74.43 plus 30% |
| × shares | 52.0 million | |
| = Equity value | $5.0B | |
| + Debt refinanced | $1.3B | |
| − Cash | $250M | |
| + Other claims | $129M | preferred stock, minority interests |
| = Enterprise value | $6.2B | 9.2× EBITDA of $673M |
| Fees | $124M | 2% of the price |
| New debt | $3.7B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $2.6B | 41% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $3.5B | $653M | $283M | $102M | $3.6B |
| Year 2 | $3.5B | $643M | $275M | $103M | $3.5B |
| Year 3 | $3.5B | $643M | $268M | $108M | $3.4B |
| Year 4 | $3.5B | $653M | $259M | $113M | $3.3B |
| Year 5 | $3.6B | $672M | $251M | $123M | $3.2B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 7.5× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $5.0B | |
| − Debt left | $3.2B | |
| = Buyer's equity | $1.9B | |
| Money multiple | 0.72× | on $2.6B put in |
| Buyer's yearly return (IRR) | −6.5% |
Price against return
What the buyer makes at other premiums over today's $74.43; the IRR reaches 20% at $50.50 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $81.87 | 1.0% |
| 20% | $89.32 | −3.4% |
| 30% | $96.76 | −6.5% |
| 40% | $104.20 | −9.1% |
| 50% | $111.65 | −11.3% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $3.6B | |
| EBITDA, last 12 months | $673M | 18.5% of revenue |
| Depreciation and amortization | $180M | |
| Capital spending | $216M | |
| Debt | $1.3B | |
| Cash | $250M | |
| Share price | $74.43 | 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 -3.0% 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 30% 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, Cabot would cost about $98.62 a share, $5.1B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $89.32 | $4.6B |
| Median | 32.5% | $98.62 | $5.1B |
| High end (a quarter paid more) | 51.8% | $112.98 | $5.9B |
The odds, from history
Historically 3.9% of companies with its figures were bought within a year (0.77× 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.
Cabot's latest quarter
Cabot, Q4 FY26: revenue $1.0B (+12% year over year), operating margin 12.0%, net earnings $66.0M. The chart follows the revenue to costs, profit and cash.
Questions
Is Cabot being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Cabot?
A leveraged buyout at today's price plus 30% ($96.76 a share) would return a loss of about 6% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $50.50 a share (−32% against today's $74.43).
What would a takeover of Cabot 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, Cabot would cost about $98.62 a share, $5.1B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.