Filing Flows › Capri Holdings (CPRI) › Takeover & LBO
Is Capri Holdings (CPRI) a takeover target?
A leveraged buyout at today's price plus 30% ($24.28 a share) would return a loss of about 7% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $11.08 a share (−41% against today's $18.68). Historically 3.7% of companies with its figures were bought within a year (0.74× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $24.28 | today's $18.68 plus 30% |
| × shares | 110.4 million | |
| = Equity value | $2.7B | |
| + Debt refinanced | $376M | |
| − Cash | $125M | |
| + Other claims | $5.0M | preferred stock, minority interests |
| = Enterprise value | $2.9B | 17.7× EBITDA of $166M |
| Fees | $58.7M | 2% of the price |
| New debt | $913M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $2.1B | 70% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $3.3B | $161M | $69.8M | $16.5M | $897M |
| Year 2 | $3.2B | $159M | $68.6M | $16.5M | $880M |
| Year 3 | $3.2B | $159M | $67.3M | $17.7M | $862M |
| Year 4 | $3.3B | $161M | $66.0M | $15.5M | $847M |
| Year 5 | $3.4B | $166M | $64.8M | $14.2M | $833M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 14.0× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $2.3B | |
| − Debt left | $833M | |
| = Buyer's equity | $1.5B | |
| Money multiple | 0.71× | on $2.1B put in |
| Buyer's yearly return (IRR) | −6.6% |
Price against return
What the buyer makes at other premiums over today's $18.68; the IRR reaches 20% at $11.08 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $20.55 | −2.3% |
| 20% | $22.42 | −4.6% |
| 30% | $24.28 | −6.6% |
| 40% | $26.15 | −8.3% |
| 50% | $28.02 | −9.9% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $3.4B | |
| EBITDA, last 12 months | $166M | 4.9% of revenue |
| Depreciation and amortization | $120M | |
| Capital spending | $77.0M | |
| Debt | $376M | |
| Cash | $125M | |
| Share price | $18.68 | 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 12% 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, Capri Holdings would cost about $24.75 a share, $2.7B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $22.42 | $2.5B |
| Median | 32.5% | $24.75 | $2.7B |
| High end (a quarter paid more) | 51.8% | $28.36 | $3.1B |
The odds, from history
Historically 3.7% of companies with its figures were bought within a year (0.74× 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.
Capri Holdings' latest quarter
Capri Holdings, Q2 FY27: revenue $809M (-6% year over year), operating margin 1.2%, net earnings $27.0M, operating cash flow $51.0M. The chart follows the revenue to costs, profit and cash.
Questions
Is Capri Holdings being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Capri Holdings?
A leveraged buyout at today's price plus 30% ($24.28 a share) would return a loss of about 7% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $11.08 a share (−41% against today's $18.68).
What would a takeover of Capri Holdings 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, Capri Holdings would cost about $24.75 a share, $2.7B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.