Filing Flows › J&J Snack Foods (JJSF) › Takeover & LBO
Is J&J Snack Foods (JJSF) a takeover target?
A leveraged buyout at today's price plus 30% ($111.01 a share) would return a loss of about 9% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $55.39 a share (−35% against today's $85.39).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $111.01 | today's $85.39 plus 30% |
| × shares | 18.7 million | |
| = Equity value | $2.1B | |
| + Debt refinanced | $57.0M | |
| − Cash | $63.1M | |
| = Enterprise value | $2.1B | 15.3× EBITDA of $136M |
| Fees | $41.5M | 2% of the price |
| New debt | $747M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $1.4B | 65% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.5B | $132M | $57.1M | $1.7M | $745M |
| Year 2 | $1.5B | $130M | $57.0M | $1.1M | $744M |
| Year 3 | $1.5B | $130M | $56.9M | $1.1M | $743M |
| Year 4 | $1.5B | $132M | $56.8M | −$286K | $743M |
| Year 5 | $1.5B | $136M | $56.8M | −$1.1M | $744M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 11.7× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $1.6B | |
| − Debt left | $744M | |
| = Buyer's equity | $849M | |
| Money multiple | 0.62× | on $1.4B put in |
| Buyer's yearly return (IRR) | −9.1% |
Price against return
What the buyer makes at other premiums over today's $85.39; the IRR reaches 20% at $55.39 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $93.93 | −4.0% |
| 20% | $102.47 | −6.8% |
| 30% | $111.01 | −9.1% |
| 40% | $119.55 | −11.2% |
| 50% | $128.09 | −12.9% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.5B | |
| EBITDA, last 12 months | $136M | 8.9% of revenue |
| Depreciation and amortization | $75.5M | |
| Capital spending | $74.9M | |
| Debt | $57.0M | |
| Cash | $63.1M | |
| Share price | $85.39 | 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 20% 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, J&J Snack Foods would cost about $113.14 a share, $2.1B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $102.47 | $1.9B |
| Median | 32.5% | $113.14 | $2.1B |
| High end (a quarter paid more) | 51.8% | $129.62 | $2.4B |
J&J Snack Foods' latest quarter
J&J Snack Foods, Q3 FY26: revenue $426M (-6% year over year), operating margin 10.9%, net earnings $35.3M, operating cash flow $48.8M. The chart follows the revenue to costs, profit and cash.
Questions
Is J&J Snack Foods being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy J&J Snack Foods?
A leveraged buyout at today's price plus 30% ($111.01 a share) would return a loss of about 9% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $55.39 a share (−35% against today's $85.39).
What would a takeover of J&J Snack Foods 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, J&J Snack Foods would cost about $113.14 a share, $2.1B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.