Filing Flows › Fabrinet (FN) › Takeover & LBO
Is Fabrinet (FN) a takeover target?
A leveraged buyout at today's price plus 30% ($421.92 a share) would return a loss of about 2% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 1.9% of companies with its figures were bought within a year (0.37× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $421.92 | today's $324.55 plus 30% |
| × shares | 36.2 million | |
| = Equity value | $15.3B | |
| + Debt refinanced | $74.7M | |
| − Cash | $756M | |
| = Enterprise value | $14.6B | 24.8× EBITDA of $590M |
| Fees | $292M | 2% of the price |
| New debt | $3.2B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $11.7B | 78% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $5.5B | $637M | $248M | −$102M | $3.3B |
| Year 2 | $5.9B | $680M | $256M | −$94.6M | $3.4B |
| Year 3 | $6.2B | $718M | $263M | −$87.2M | $3.5B |
| Year 4 | $6.5B | $748M | $270M | −$79.8M | $3.6B |
| Year 5 | $6.7B | $770M | $276M | −$72.7M | $3.7B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 18.8× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $14.5B | |
| − Debt left | $3.7B | |
| = Buyer's equity | $10.8B | |
| Money multiple | 0.93× | on $11.7B put in |
| Buyer's yearly return (IRR) | −1.5% |
Price against return
What the buyer makes at other premiums over today's $324.55.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $357.01 | 3.1% |
| 20% | $389.46 | 0.6% |
| 30% | $421.92 | −1.5% |
| 40% | $454.37 | −3.4% |
| 50% | $486.83 | −5.1% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $5.1B | |
| EBITDA, last 12 months | $590M | 11.5% of revenue |
| Depreciation and amortization | $75.2M | |
| Capital spending | $366M | |
| Debt | $74.7M | |
| Cash | $756M | |
| Share price | $324.55 | 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 in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Fabrinet would cost about $421.92 a share, $15.3B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $363.50 | $13.2B |
| Median | 30% | $421.92 | $15.3B |
| High end (a quarter paid more) | 31% | $425.16 | $15.4B |
The odds, from history
Historically 1.9% of companies with its figures were bought within a year (0.37× 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.
Fabrinet's latest quarter
Fabrinet, Q1 FY27: revenue $1.5B (+51% year over year), operating margin 9.9%, net earnings $103M, operating cash flow $21.3M. The chart follows the revenue to costs, profit and cash.
Questions
Is Fabrinet being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Fabrinet?
A leveraged buyout at today's price plus 30% ($421.92 a share) would return a loss of about 2% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Fabrinet cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Fabrinet would cost about $421.92 a share, $15.3B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.