Filing Flows › Franklin Electric (FELE) › Takeover & LBO
Is Franklin Electric (FELE) a takeover target?
A leveraged buyout at today's price plus 30% ($123.99 a share) would return about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $76.53 a share (−20% against today's $95.38). Historically 3.1% of companies with its figures were bought within a year (0.62× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $123.99 | today's $95.38 plus 30% |
| × shares | 44.6 million | |
| = Equity value | $5.5B | |
| + Debt refinanced | $561M | |
| − Cash | $159M | |
| + Other claims | $2.4M | preferred stock, minority interests |
| = Enterprise value | $5.9B | 17.0× EBITDA of $350M |
| Fees | $119M | 2% of the price |
| New debt | $1.9B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $4.1B | 68% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.4B | $375M | $147M | $122M | $1.8B |
| Year 2 | $2.6B | $398M | $138M | $146M | $1.7B |
| Year 3 | $2.7B | $419M | $127M | $170M | $1.5B |
| Year 4 | $2.8B | $436M | $114M | $193M | $1.3B |
| Year 5 | $2.9B | $449M | $98.9M | $216M | $1.1B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 13.3× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $6.0B | |
| − Debt left | $1.1B | |
| = Buyer's equity | $4.9B | |
| Money multiple | 1.19× | on $4.1B put in |
| Buyer's yearly return (IRR) | 3.5% |
Price against return
What the buyer makes at other premiums over today's $95.38; the IRR reaches 20% at $76.53 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $104.92 | 8.5% |
| 20% | $114.46 | 5.8% |
| 30% | $123.99 | 3.5% |
| 40% | $133.53 | 1.4% |
| 50% | $143.07 | −0.4% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.3B | |
| EBITDA, last 12 months | $350M | 15.4% of revenue |
| Depreciation and amortization | $69.7M | |
| Capital spending | $49.9M | |
| Debt | $561M | |
| Cash | $159M | |
| Share price | $95.38 | 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 7.3% 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 24% 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, Franklin Electric would cost about $133.53 a share, $6.0B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $109.40 | $4.9B |
| Median | 40% | $133.53 | $6.0B |
| High end (a quarter paid more) | 60.2% | $152.80 | $6.8B |
The odds, from history
Historically 3.1% of companies with its figures were bought within a year (0.62× 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.
Franklin Electric's latest quarter
Franklin Electric, Q3 2026: revenue $634M (+9% year over year), operating margin 13.7%, net earnings $61.0M, operating cash flow $80.5M. The chart follows the revenue to costs, profit and cash.
Questions
Is Franklin Electric being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Franklin Electric?
A leveraged buyout at today's price plus 30% ($123.99 a share) would return about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $76.53 a share (−20% against today's $95.38).
What would a takeover of Franklin Electric 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, Franklin Electric would cost about $133.53 a share, $6.0B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.