Filing Flows › International Flavors & Fragrances (IFF) › Takeover & LBO
Is International Flavors & Fragrances (IFF) a takeover target?
A leveraged buyout at today's price plus 30% ($108.61 a share) would return a loss of about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $34.89 a share (−58% against today's $83.55). It already carries 10.8× EBITDA in net debt (the model flags anything over 6×), so a buyer could add little debt of its own. Historically 3.2% of companies with its figures were bought within a year (0.63× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $108.61 | today's $83.55 plus 30% |
| × shares | 253.0 million | |
| = Equity value | $27.5B | |
| + Debt refinanced | $6.2B | |
| − Cash | $272M | |
| + Other claims | $31.0M | preferred stock, minority interests |
| = Enterprise value | $33.4B | 60.9× EBITDA of $549M |
| Fees | $668M | 2% of the price |
| New debt | $3.0B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $31.1B | 91% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $12.6B | $593M | $231M | −$420M | $3.4B |
| Year 2 | $13.5B | $633M | $263M | −$450M | $3.9B |
| Year 3 | $14.2B | $668M | $297M | −$479M | $4.4B |
| Year 4 | $14.8B | $696M | $334M | −$506M | $4.9B |
| Year 5 | $15.3B | $717M | $373M | −$532M | $5.4B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 49.3× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $35.4B | |
| − Debt left | $5.4B | |
| = Buyer's equity | $30.0B | |
| Money multiple | 0.96× | on $31.1B put in |
| Buyer's yearly return (IRR) | −0.7% |
Price against return
What the buyer makes at other premiums over today's $83.55; the IRR reaches 20% at $34.89 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $91.90 | 2.3% |
| 20% | $100.25 | 0.7% |
| 30% | $108.61 | −0.7% |
| 40% | $116.96 | −2.0% |
| 50% | $125.32 | −3.3% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $11.7B | |
| EBITDA, last 12 months | $549M | 4.7% of revenue |
| Depreciation and amortization | $851M | |
| Capital spending | $637M | |
| Debt | $6.2B | |
| Cash | $272M | |
| Share price | $83.55 | 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 21% 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, International Flavors & Fragrances would cost about $110.70 a share, $28.0B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $100.25 | $25.4B |
| Median | 32.5% | $110.70 | $28.0B |
| High end (a quarter paid more) | 51.8% | $126.82 | $32.1B |
The odds, from history
Historically 3.2% of companies with its figures were bought within a year (0.63× 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.
International Flavors & Fragrances' latest quarter
International Flavors & Fragrances, Q3 2026: revenue $1.9B (+4% year over year), operating margin 8.2%, net loss $55.0M, operating cash flow $141M. The chart follows the revenue to costs, profit and cash.
Questions
Is International Flavors & Fragrances being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy International Flavors & Fragrances?
A leveraged buyout at today's price plus 30% ($108.61 a share) would return a loss of about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $34.89 a share (−58% against today's $83.55). It already carries 10.8× EBITDA in net debt (the model flags anything over 6×), so a buyer could add little debt of its own.
What would a takeover of International Flavors & Fragrances 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, International Flavors & Fragrances would cost about $110.70 a share, $28.0B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.