Filing Flows › ITT (ITT) › Takeover & LBO
Is ITT (ITT) a takeover target?
A leveraged buyout at today's price plus 30% ($266.53 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 $140.77 a share (−31% against today's $205.02). Historically 4.6% of companies with its figures were bought within a year (0.91× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $266.53 | today's $205.02 plus 30% |
| × shares | 89.8 million | |
| = Equity value | $23.9B | |
| + Debt refinanced | $2.8B | |
| − Cash | $558M | |
| + Other claims | $8.9M | preferred stock, minority interests |
| = Enterprise value | $26.2B | 26.1× EBITDA of $1.0B |
| Fees | $524M | 2% of the price |
| New debt | $5.5B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $21.2B | 79% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $5.6B | $1.1B | $423M | $378M | $5.2B |
| Year 2 | $6.0B | $1.2B | $394M | $450M | $4.7B |
| Year 3 | $6.3B | $1.2B | $360M | $521M | $4.2B |
| Year 4 | $6.6B | $1.3B | $320M | $590M | $3.6B |
| Year 5 | $6.8B | $1.3B | $275M | $653M | $2.9B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 20.6× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $27.0B | |
| − Debt left | $2.9B | |
| = Buyer's equity | $24.1B | |
| Money multiple | 1.14× | on $21.2B put in |
| Buyer's yearly return (IRR) | 2.6% |
Price against return
What the buyer makes at other premiums over today's $205.02; the IRR reaches 20% at $140.77 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $225.52 | 6.7% |
| 20% | $246.02 | 4.5% |
| 30% | $266.53 | 2.6% |
| 40% | $287.03 | 0.8% |
| 50% | $307.53 | −0.7% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $5.2B | |
| EBITDA, last 12 months | $1.0B | 19.4% of revenue |
| Depreciation and amortization | $278M | |
| Capital spending | $125M | |
| Debt | $2.8B | |
| Cash | $558M | |
| Share price | $205.02 | 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 30% 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, ITT would cost about $287.03 a share, $25.8B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $235.16 | $21.1B |
| Median | 40% | $287.03 | $25.8B |
| High end (a quarter paid more) | 60.2% | $328.44 | $29.5B |
The odds, from history
Historically 4.6% of companies with its figures were bought within a year (0.91× the average). Its figures put it in decile 5 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.
ITT's latest quarter
ITT, Q3 2026: revenue $1.4B (+44% year over year), operating margin 15.7%, net earnings $124M, operating cash flow $312M. The chart follows the revenue to costs, profit and cash.
Questions
Is ITT being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy ITT?
A leveraged buyout at today's price plus 30% ($266.53 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 $140.77 a share (−31% against today's $205.02).
What would a takeover of ITT 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, ITT would cost about $287.03 a share, $25.8B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.