Filing Flows › G III Apparel Group (GIII) › Takeover & LBO
Is G III Apparel Group (GIII) a takeover target?
A leveraged buyout at today's price plus 30% ($39.36 a share) would return about 0% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $39.36 | today's $30.28 plus 30% |
| × shares | 44.3 million | |
| = Equity value | $1.7B | |
| + Debt refinanced | $4.6M | |
| − Cash | $529M | |
| = Enterprise value | $1.2B | 5.8× EBITDA of $210M |
| Fees | $24.4M | 2% of the price |
| New debt | $793M | 3.8× EBITDA at 7.65% a year; the limit that binds: 65% of the price |
| Buyer's own money | $452M | 36% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.8B | $203M | $60.7M | $80.0M | $714M |
| Year 2 | $2.7B | $200M | $54.6M | $82.7M | $631M |
| Year 3 | $2.7B | $200M | $48.3M | $87.3M | $544M |
| Year 4 | $2.8B | $203M | $41.6M | $90.0M | $453M |
| Year 5 | $2.8B | $210M | $34.7M | $94.7M | $359M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 3.9× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $817M | |
| − Debt left | $359M | |
| = Buyer's equity | $458M | |
| Money multiple | 1.01× | on $452M put in |
| Buyer's yearly return (IRR) | 0.3% |
Price against return
What the buyer makes at other premiums over today's $30.28.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $33.31 | 14.3% |
| 20% | $36.34 | 7.4% |
| 30% | $39.36 | 0.3% |
| 40% | $42.39 | −7.3% |
| 50% | $45.42 | −16.1% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.9B | |
| EBITDA, last 12 months | $210M | 7.4% of revenue |
| Depreciation and amortization | $30.5M | |
| Capital spending | $34.4M | |
| Debt | $4.6M | |
| Cash | $529M | |
| Share price | $30.28 | 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 -3.0% 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 26% 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, G III Apparel Group would cost about $40.12 a share, $1.8B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $36.34 | $1.6B |
| Median | 32.5% | $40.12 | $1.8B |
| High end (a quarter paid more) | 51.8% | $45.97 | $2.0B |
G III Apparel Group's latest quarter
G III Apparel Group, Q2 FY27: revenue $554M (-10% year over year), operating margin 2.0%, net earnings $20.2M, operating cash flow $181M. The chart follows the revenue to costs, profit and cash.
Questions
Is G III Apparel Group being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy G III Apparel Group?
A leveraged buyout at today's price plus 30% ($39.36 a share) would return about 0% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of G III Apparel Group 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, G III Apparel Group would cost about $40.12 a share, $1.8B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.