Filing Flows › Darling Ingredients (DAR) › Takeover & LBO
Is Darling Ingredients (DAR) a takeover target?
A leveraged buyout at today's price plus 30% ($65.36 a share) would return about 10% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $50.66 a share (1% against today's $50.28). Historically 3.2% of companies with its figures were bought within a year (0.63× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $65.36 | today's $50.28 plus 30% |
| × shares | 160.6 million | |
| = Equity value | $10.5B | |
| + Debt refinanced | $4.0B | |
| − Cash | $161M | |
| + Other claims | $60.5M | preferred stock, minority interests |
| = Enterprise value | $14.4B | 9.7× EBITDA of $1.5B |
| Fees | $287M | 2% of the price |
| New debt | $8.1B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $6.5B | 45% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $7.1B | $1.6B | $621M | $435M | $7.7B |
| Year 2 | $7.5B | $1.7B | $588M | $534M | $7.1B |
| Year 3 | $8.0B | $1.8B | $547M | $631M | $6.5B |
| Year 4 | $8.3B | $1.9B | $499M | $726M | $5.8B |
| Year 5 | $8.6B | $1.9B | $443M | $815M | $5.0B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 8.1× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $15.6B | |
| − Debt left | $5.0B | |
| = Buyer's equity | $10.6B | |
| Money multiple | 1.63× | on $6.5B put in |
| Buyer's yearly return (IRR) | 10.2% |
Price against return
What the buyer makes at other premiums over today's $50.28; the IRR reaches 20% at $50.66 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $55.31 | 16.8% |
| 20% | $60.34 | 13.2% |
| 30% | $65.36 | 10.2% |
| 40% | $70.39 | 7.6% |
| 50% | $75.42 | 5.4% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $6.5B | |
| EBITDA, last 12 months | $1.5B | 22.5% of revenue |
| Depreciation and amortization | $525M | |
| Capital spending | $380M | |
| Debt | $4.0B | |
| Cash | $161M | |
| Share price | $50.28 | 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 18% 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, Darling Ingredients would cost about $66.62 a share, $10.7B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $60.34 | $9.7B |
| Median | 32.5% | $66.62 | $10.7B |
| High end (a quarter paid more) | 51.8% | $76.33 | $12.3B |
The odds, from history
Historically 3.2% of companies with its figures were bought within a year (0.63× the average). Its figures put it in decile 2 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.
Darling Ingredients' latest quarter
Darling Ingredients, Q3 2026: revenue $1.8B (+14% year over year), operating margin 18.6%, net earnings $267M. The chart follows the revenue to costs, profit and cash.
Questions
Is Darling Ingredients being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Darling Ingredients?
A leveraged buyout at today's price plus 30% ($65.36 a share) would return about 10% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $50.66 a share (1% against today's $50.28).
What would a takeover of Darling Ingredients 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, Darling Ingredients would cost about $66.62 a share, $10.7B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.