Filing Flows › Colgate Palmolive (CL) › Takeover & LBO
Is Colgate Palmolive (CL) a takeover target?
A leveraged buyout at today's price plus 30% ($128.30 a share) would return about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $63.53 a share (−36% against today's $98.69). At $109.2B it would be larger than any buyout on record (the model flags anything over $60 billion), so this is a thought experiment more than a prospect. Historically 3.2% of companies with its figures were bought within a year (0.65× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $128.30 | today's $98.69 plus 30% |
| × shares | 799.7 million | |
| = Equity value | $102.6B | |
| + Debt refinanced | $7.8B | |
| − Cash | $1.6B | |
| + Other claims | $352M | preferred stock, minority interests |
| = Enterprise value | $109.2B | 28.7× EBITDA of $3.8B |
| Fees | $2.2B | 2% of the price |
| New debt | $20.9B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $90.4B | 81% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $22.5B | $4.0B | $1.6B | $1.2B | $19.7B |
| Year 2 | $23.7B | $4.2B | $1.5B | $1.4B | $18.3B |
| Year 3 | $24.8B | $4.4B | $1.4B | $1.6B | $16.6B |
| Year 4 | $25.7B | $4.6B | $1.3B | $1.8B | $14.8B |
| Year 5 | $26.5B | $4.7B | $1.1B | $2.1B | $12.7B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 22.5× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $106.3B | |
| − Debt left | $12.7B | |
| = Buyer's equity | $93.5B | |
| Money multiple | 1.03× | on $90.4B put in |
| Buyer's yearly return (IRR) | 0.7% |
Price against return
What the buyer makes at other premiums over today's $98.69; the IRR reaches 20% at $63.53 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $108.56 | 4.7% |
| 20% | $118.43 | 2.6% |
| 30% | $128.30 | 0.7% |
| 40% | $138.17 | −1.0% |
| 50% | $148.03 | −2.6% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $21.3B | |
| EBITDA, last 12 months | $3.8B | 17.9% of revenue |
| Depreciation and amortization | $643M | |
| Capital spending | $577M | |
| Debt | $7.8B | |
| Cash | $1.6B | |
| Share price | $98.69 | 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 5.9% 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 27% 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, Colgate Palmolive would cost about $130.76 a share, $104.6B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $118.43 | $94.7B |
| Median | 32.5% | $130.76 | $104.6B |
| High end (a quarter paid more) | 51.8% | $149.81 | $119.8B |
The odds, from history
Historically 3.2% of companies with its figures were bought within a year (0.65× the average). Its figures put it in decile 3 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.
Colgate Palmolive's latest quarter
Colgate Palmolive, Q3 2026: revenue $5.4B (+5% year over year), operating margin 20.3%, net earnings $751M, operating cash flow $1.2B. The chart follows the revenue to costs, profit and cash.
Questions
Is Colgate Palmolive being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Colgate Palmolive?
A leveraged buyout at today's price plus 30% ($128.30 a share) would return about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $63.53 a share (−36% against today's $98.69). At $109.2B it would be larger than any buyout on record (the model flags anything over $60 billion), so this is a thought experiment more than a prospect.
What would a takeover of Colgate Palmolive 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, Colgate Palmolive would cost about $130.76 a share, $104.6B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.