Filing Flows › Esab (ESAB) › Takeover & LBO
Is Esab (ESAB) a takeover target?
A leveraged buyout at today's price plus 30% ($90.69 a share) would return about 6% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $49.26 a share (−29% against today's $69.76). Historically 4.7% of companies with its figures were bought within a year (0.94× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $90.69 | today's $69.76 plus 30% |
| × shares | 62.4 million | |
| = Equity value | $5.7B | |
| + Debt refinanced | $2.3B | |
| − Cash | $189M | |
| + Other claims | $217M | preferred stock, minority interests |
| = Enterprise value | $8.0B | 17.2× EBITDA of $466M |
| Fees | $160M | 2% of the price |
| New debt | $2.6B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $5.6B | 69% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $3.3B | $503M | $196M | $168M | $2.4B |
| Year 2 | $3.6B | $537M | $183M | $204M | $2.2B |
| Year 3 | $3.8B | $567M | $168M | $240M | $2.0B |
| Year 4 | $3.9B | $591M | $149M | $274M | $1.7B |
| Year 5 | $4.0B | $609M | $128M | $307M | $1.4B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 14.4× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $8.8B | |
| − Debt left | $1.4B | |
| = Buyer's equity | $7.4B | |
| Money multiple | 1.32× | on $5.6B put in |
| Buyer's yearly return (IRR) | 5.7% |
Price against return
What the buyer makes at other premiums over today's $69.76; the IRR reaches 20% at $49.26 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $76.74 | 9.4% |
| 20% | $83.71 | 7.4% |
| 30% | $90.69 | 5.7% |
| 40% | $97.66 | 4.1% |
| 50% | $104.64 | 2.6% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $3.1B | |
| EBITDA, last 12 months | $466M | 15.0% of revenue |
| Depreciation and amortization | $118M | |
| Capital spending | $69.3M | |
| Debt | $2.3B | |
| Cash | $189M | |
| Share price | $69.76 | 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 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 22% 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 in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Esab would cost about $97.66 a share, $6.1B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $80.01 | $5.0B |
| Median | 40% | $97.66 | $6.1B |
| High end (a quarter paid more) | 60.2% | $111.76 | $7.0B |
The odds, from history
Historically 4.7% of companies with its figures were bought within a year (0.94× the average). Its figures put it in decile 5 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.
Esab's latest quarter
Esab, Q3 2026: revenue $825M (+13% year over year), operating margin 11.1%, net earnings $38.9M, operating cash flow $72.7M. The chart follows the revenue to costs, profit and cash.
Questions
Is Esab being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Esab?
A leveraged buyout at today's price plus 30% ($90.69 a share) would return about 6% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $49.26 a share (−29% against today's $69.76).
What would a takeover of Esab cost?
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Esab would cost about $97.66 a share, $6.1B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.