Filing Flows › Chesapeake Utilities (CPK) › Takeover & LBO
Is Chesapeake Utilities (CPK) a takeover target?
A leveraged buyout at today's price plus 30% ($167.70 a share) would return a loss of about 10% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $42.37 a share (−67% against today's $129.00). Historically 5.5% of companies with its figures were bought within a year (1.09× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $167.70 | today's $129.00 plus 30% |
| × shares | 24.2 million | |
| = Equity value | $4.1B | |
| + Debt refinanced | $1.7B | |
| − Cash | $400K | |
| = Enterprise value | $5.8B | 16.0× EBITDA of $363M |
| Fees | $116M | 2% of the price |
| New debt | $2.0B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $3.9B | 66% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.1B | $392M | $153M | −$346M | $2.3B |
| Year 2 | $1.1B | $418M | $179M | −$380M | $2.7B |
| Year 3 | $1.2B | $441M | $208M | −$414M | $3.1B |
| Year 4 | $1.3B | $460M | $240M | −$448M | $3.6B |
| Year 5 | $1.3B | $474M | $274M | −$480M | $4.1B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 13.4× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $6.3B | |
| − Debt left | $4.1B | |
| = Buyer's equity | $2.3B | |
| Money multiple | 0.58× | on $3.9B put in |
| Buyer's yearly return (IRR) | −10.2% |
Price against return
What the buyer makes at other premiums over today's $129.00; the IRR reaches 20% at $42.37 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $141.90 | −7.0% |
| 20% | $154.80 | −8.7% |
| 30% | $167.70 | −10.2% |
| 40% | $180.60 | −11.6% |
| 50% | $193.50 | −12.9% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $994M | |
| EBITDA, last 12 months | $363M | 36.5% of revenue |
| Depreciation and amortization | $91.7M | |
| Capital spending | $502M | |
| Debt | $1.7B | |
| Cash | $400K | |
| Share price | $129.00 | on Oct 12, 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 26% 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, Chesapeake Utilities would cost about $170.92 a share, $4.1B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $154.80 | $3.7B |
| Median | 32.5% | $170.92 | $4.1B |
| High end (a quarter paid more) | 51.8% | $195.82 | $4.7B |
The odds, from history
Historically 5.5% of companies with its figures were bought within a year (1.09× the average). Its figures put it in decile 7 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.
Chesapeake Utilities' latest quarter
Chesapeake Utilities, Q3 2026: revenue $196M (+9% year over year), operating margin 24.8%, net earnings $21.6M, operating cash flow $88.1M. The chart follows the revenue to costs, profit and cash.
Questions
Is Chesapeake Utilities being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Chesapeake Utilities?
A leveraged buyout at today's price plus 30% ($167.70 a share) would return a loss of about 10% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $42.37 a share (−67% against today's $129.00).
What would a takeover of Chesapeake Utilities 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, Chesapeake Utilities would cost about $170.92 a share, $4.1B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.