Filing Flows › Del Monte (DMC) › Takeover & LBO
Is Del Monte (DMC) a takeover target?
A leveraged buyout at today's price plus 30% ($35.54 a share) would return a loss of about 4% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $17.56 a share (−36% against today's $27.34). Historically 5.7% of companies with its figures were bought within a year (1.13× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $35.54 | today's $27.34 plus 30% |
| × shares | 47.3 million | |
| = Equity value | $1.7B | |
| + Debt refinanced | $500M | |
| − Cash | $21.1M | |
| + Other claims | $15.1M | preferred stock, minority interests |
| = Enterprise value | $2.2B | 10.7× EBITDA of $202M |
| Fees | $43.5M | 2% of the price |
| New debt | $1.1B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $1.1B | 50% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $4.4B | $205M | $85.2M | $2.3M | $1.1B |
| Year 2 | $4.5B | $209M | $85.0M | $1.9M | $1.1B |
| Year 3 | $4.6B | $214M | $84.9M | $1.6M | $1.1B |
| Year 4 | $4.7B | $219M | $84.8M | $1.6M | $1.1B |
| Year 5 | $4.9B | $226M | $84.6M | $1.7M | $1.1B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 8.8× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $2.0B | |
| − Debt left | $1.1B | |
| = Buyer's equity | $891M | |
| Money multiple | 0.81× | on $1.1B put in |
| Buyer's yearly return (IRR) | −4.2% |
Price against return
What the buyer makes at other premiums over today's $27.34; the IRR reaches 20% at $17.56 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $30.07 | 1.1% |
| 20% | $32.81 | −1.8% |
| 30% | $35.54 | −4.2% |
| 40% | $38.28 | −6.4% |
| 50% | $41.01 | −8.3% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $4.4B | |
| EBITDA, last 12 months | $202M | 4.6% of revenue |
| Depreciation and amortization | $73.8M | |
| Capital spending | $97.3M | |
| Debt | $500M | |
| Cash | $21.1M | |
| Share price | $27.34 | 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 1.4% 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 29% 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, Del Monte would cost about $36.23 a share, $1.7B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $32.81 | $1.6B |
| Median | 32.5% | $36.23 | $1.7B |
| High end (a quarter paid more) | 51.8% | $41.50 | $2.0B |
The odds, from history
Historically 5.7% of companies with its figures were bought within a year (1.13× 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.
Del Monte's latest quarter
Del Monte, Q3 2026: revenue $1.1B (+7% year over year), operating margin 2.7%, net earnings $18.7M, operating cash flow −$40.9M. The chart follows the revenue to costs, profit and cash.
Questions
Is Del Monte being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Del Monte?
A leveraged buyout at today's price plus 30% ($35.54 a share) would return a loss of about 4% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $17.56 a share (−36% against today's $27.34).
What would a takeover of Del Monte 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, Del Monte would cost about $36.23 a share, $1.7B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.