Filing Flows › Ingersoll Rand (IR) › Takeover & LBO
Is Ingersoll Rand (IR) a takeover target?
A leveraged buyout at today's price plus 30% ($108.24 a share) would return about 5% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $66.96 a share (−20% against today's $83.26). Historically 2.7% of companies with its figures were bought within a year (0.54× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $108.24 | today's $83.26 plus 30% |
| × shares | 388.1 million | |
| = Equity value | $42.0B | |
| + Debt refinanced | $4.7B | |
| − Cash | $1.3B | |
| + Other claims | $65.0M | preferred stock, minority interests |
| = Enterprise value | $45.5B | 19.0× EBITDA of $2.4B |
| Fees | $909M | 2% of the price |
| New debt | $13.1B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $33.2B | 72% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $8.7B | $2.6B | $1.0B | $1.2B | $11.9B |
| Year 2 | $9.3B | $2.8B | $911M | $1.5B | $10.4B |
| Year 3 | $9.8B | $2.9B | $799M | $1.7B | $8.7B |
| Year 4 | $10.2B | $3.0B | $668M | $1.9B | $6.8B |
| Year 5 | $10.5B | $3.1B | $521M | $2.1B | $4.7B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 15.0× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $46.7B | |
| − Debt left | $4.7B | |
| = Buyer's equity | $42.0B | |
| Money multiple | 1.26× | on $33.2B put in |
| Buyer's yearly return (IRR) | 4.8% |
Price against return
What the buyer makes at other premiums over today's $83.26; the IRR reaches 20% at $66.96 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $91.59 | 9.5% |
| 20% | $99.91 | 7.0% |
| 30% | $108.24 | 4.8% |
| 40% | $116.56 | 2.8% |
| 50% | $124.89 | 1.1% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $8.1B | |
| EBITDA, last 12 months | $2.4B | 29.7% of revenue |
| Depreciation and amortization | $548M | |
| Capital spending | $125M | |
| Debt | $4.7B | |
| Cash | $1.3B | |
| Share price | $83.26 | 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 14% 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, Ingersoll Rand would cost about $116.56 a share, $45.2B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $95.50 | $37.1B |
| Median | 40% | $116.56 | $45.2B |
| High end (a quarter paid more) | 60.2% | $133.38 | $51.8B |
The odds, from history
Historically 2.7% of companies with its figures were bought within a year (0.54× 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.
Ingersoll Rand's latest quarter
Ingersoll Rand, Q3 2026: revenue $2.1B (+6% year over year), operating margin 37.9%, net earnings $672M, operating cash flow $648M. The chart follows the revenue to costs, profit and cash.
Questions
Is Ingersoll Rand being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Ingersoll Rand?
A leveraged buyout at today's price plus 30% ($108.24 a share) would return about 5% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $66.96 a share (−20% against today's $83.26).
What would a takeover of Ingersoll Rand 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, Ingersoll Rand would cost about $116.56 a share, $45.2B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.