Filing Flows › Celestica (CLS) › Takeover & LBO
Is Celestica (CLS) a takeover target?
A leveraged buyout at today's price plus 30% ($267.33 a share) would return a loss of about 1% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 1.9% of companies with its figures were bought within a year (0.38× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $267.33 | today's $205.64 plus 30% |
| × shares | 121.8 million | |
| = Equity value | $32.6B | |
| + Debt refinanced | $819M | |
| − Cash | $4.0B | |
| = Enterprise value | $29.4B | 17.4× EBITDA of $1.7B |
| Fees | $588M | 2% of the price |
| New debt | $9.3B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $20.7B | 69% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $19.7B | $1.8B | $711M | −$94.5M | $9.4B |
| Year 2 | $21.0B | $1.9B | $718M | −$43.2M | $9.4B |
| Year 3 | $22.2B | $2.1B | $721M | $10.0M | $9.4B |
| Year 4 | $23.1B | $2.1B | $721M | $63.6M | $9.4B |
| Year 5 | $23.8B | $2.2B | $716M | $116M | $9.2B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 13.0× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $28.6B | |
| − Debt left | $9.2B | |
| = Buyer's equity | $19.4B | |
| Money multiple | 0.93× | on $20.7B put in |
| Buyer's yearly return (IRR) | −1.3% |
Price against return
What the buyer makes at other premiums over today's $205.64.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $226.20 | 4.4% |
| 20% | $246.77 | 1.3% |
| 30% | $267.33 | −1.3% |
| 40% | $287.90 | −3.6% |
| 50% | $308.46 | −5.6% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $18.2B | |
| EBITDA, last 12 months | $1.7B | 9.3% of revenue |
| Depreciation and amortization | $185M | |
| Capital spending | $862M | |
| Debt | $819M | |
| Cash | $4.0B | |
| Share price | $205.64 | 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 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 14% 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 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Celestica would cost about $267.33 a share, $32.6B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $230.32 | $28.1B |
| Median | 30% | $267.33 | $32.6B |
| High end (a quarter paid more) | 31% | $269.39 | $32.8B |
The odds, from history
Historically 1.9% of companies with its figures were bought within a year (0.38× 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.
Celestica's latest quarter
Celestica, Q3 2026: revenue $5.8B (+82% year over year), operating margin 7.9%, net earnings $397M, operating cash flow $390M. The chart follows the revenue to costs, profit and cash.
Questions
Is Celestica being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Celestica?
A leveraged buyout at today's price plus 30% ($267.33 a share) would return a loss of about 1% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Celestica cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Celestica would cost about $267.33 a share, $32.6B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.