Filing Flows › Kimball Electronics (KE) › Takeover & LBO
Is Kimball Electronics (KE) a takeover target?
A leveraged buyout at today's price plus 30% ($33.62 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 $16.86 a share (−35% against today's $25.86). Historically 3.7% of companies with its figures were bought within a year (0.73× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $33.62 | today's $25.86 plus 30% |
| × shares | 24.6 million | |
| = Equity value | $826M | |
| + Debt refinanced | $235M | |
| − Cash | $72.8M | |
| = Enterprise value | $989M | 9.4× EBITDA of $105M |
| Fees | $19.8M | 2% of the price |
| New debt | $576M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $433M | 43% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.4B | $103M | $44.0M | $4.2M | $572M |
| Year 2 | $1.4B | $103M | $43.7M | $4.3M | $567M |
| Year 3 | $1.4B | $104M | $43.4M | $3.7M | $564M |
| Year 4 | $1.5B | $106M | $43.1M | $2.9M | $561M |
| Year 5 | $1.5B | $109M | $42.9M | $2.5M | $558M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 7.6× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $829M | |
| − Debt left | $558M | |
| = Buyer's equity | $271M | |
| Money multiple | 0.63× | on $433M put in |
| Buyer's yearly return (IRR) | −9.0% |
Price against return
What the buyer makes at other premiums over today's $25.86; the IRR reaches 20% at $16.86 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $28.45 | −1.8% |
| 20% | $31.03 | −6.0% |
| 30% | $33.62 | −9.0% |
| 40% | $36.20 | −11.5% |
| 50% | $38.79 | −13.6% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.5B | |
| EBITDA, last 12 months | $105M | 7.2% of revenue |
| Depreciation and amortization | $40.7M | |
| Capital spending | $50.0M | |
| Debt | $235M | |
| Cash | $72.8M | |
| Share price | $25.86 | 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 -1.5% 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 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Kimball Electronics would cost about $33.62 a share, $826M for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $28.96 | $712M |
| Median | 30% | $33.62 | $826M |
| High end (a quarter paid more) | 31% | $33.88 | $833M |
The odds, from history
Historically 3.7% of companies with its figures were bought within a year (0.73× the average). Its figures put it in decile 3 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.
Kimball Electronics' latest quarter
Kimball Electronics, Q1 FY27: revenue $391M (+7% year over year), operating margin 3.2%, net earnings $2.6M, operating cash flow −$19.3M. The chart follows the revenue to costs, profit and cash.
Questions
Is Kimball Electronics being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Kimball Electronics?
A leveraged buyout at today's price plus 30% ($33.62 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 $16.86 a share (−35% against today's $25.86).
What would a takeover of Kimball Electronics cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Kimball Electronics would cost about $33.62 a share, $826M for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.