Filing Flows › Cintas (CTAS) › Takeover & LBO
Is Cintas (CTAS) a takeover target?
A leveraged buyout at today's price plus 30% ($291.04 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 $147.99 a share (−34% against today's $223.88). At $118.9B 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 2.4% of companies with its figures were bought within a year (0.49× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $291.04 | today's $223.88 plus 30% |
| × shares | 404.3 million | |
| = Equity value | $117.7B | |
| + Debt refinanced | $1.4B | |
| − Cash | $244M | |
| = Enterprise value | $118.9B | 37.0× EBITDA of $3.2B |
| Fees | $2.4B | 2% of the price |
| New debt | $17.7B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $103.5B | 85% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $12.5B | $3.5B | $1.4B | $1.3B | $16.4B |
| Year 2 | $13.3B | $3.7B | $1.3B | $1.5B | $14.9B |
| Year 3 | $14.1B | $3.9B | $1.1B | $1.8B | $13.1B |
| Year 4 | $14.7B | $4.1B | $1.0B | $2.0B | $11.1B |
| Year 5 | $15.1B | $4.2B | $851M | $2.2B | $8.9B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 28.5× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $119.8B | |
| − Debt left | $8.9B | |
| = Buyer's equity | $110.9B | |
| Money multiple | 1.07× | on $103.5B put in |
| Buyer's yearly return (IRR) | 1.4% |
Price against return
What the buyer makes at other premiums over today's $223.88; the IRR reaches 20% at $147.99 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $246.27 | 5.4% |
| 20% | $268.66 | 3.3% |
| 30% | $291.04 | 1.4% |
| 40% | $313.43 | −0.3% |
| 50% | $335.82 | −1.9% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $11.6B | |
| EBITDA, last 12 months | $3.2B | 27.8% of revenue |
| Depreciation and amortization | $514M | |
| Capital spending | $401M | |
| Debt | $1.4B | |
| Cash | $244M | |
| Share price | $223.88 | 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 21% 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, Cintas would cost about $296.64 a share, $119.9B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $268.66 | $108.6B |
| Median | 32.5% | $296.64 | $119.9B |
| High end (a quarter paid more) | 51.8% | $339.85 | $137.4B |
The odds, from history
Historically 2.4% of companies with its figures were bought within a year (0.49× 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.
Cintas' latest quarter
Cintas, Q1 FY27: revenue $3.0B (+11% year over year), operating margin 23.6%, net earnings $552M, operating cash flow $572M. The chart follows the revenue to costs, profit and cash.
Questions
Is Cintas being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Cintas?
A leveraged buyout at today's price plus 30% ($291.04 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 $147.99 a share (−34% against today's $223.88). At $118.9B 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 Cintas 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, Cintas would cost about $296.64 a share, $119.9B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.