Filing Flows › Knowles (KN) › Takeover & LBO
Is Knowles (KN) a takeover target?
A leveraged buyout at today's price plus 30% ($48.83 a share) would return about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $24.82 a share (−34% against today's $37.56). Historically 7.4% of companies with its figures were bought within a year (1.46× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $48.83 | today's $37.56 plus 30% |
| × shares | 87.7 million | |
| = Equity value | $4.3B | |
| + Debt refinanced | $131M | |
| − Cash | $41.0M | |
| = Enterprise value | $4.4B | 32.7× EBITDA of $134M |
| Fees | $87.4M | 2% of the price |
| New debt | $735M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $3.7B | 84% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $719M | $144M | $56.2M | $32.1M | $703M |
| Year 2 | $768M | $154M | $53.8M | $40.3M | $662M |
| Year 3 | $810M | $162M | $50.7M | $48.4M | $614M |
| Year 4 | $845M | $169M | $47.0M | $56.2M | $558M |
| Year 5 | $870M | $174M | $42.7M | $63.6M | $494M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 25.3× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $4.4B | |
| − Debt left | $494M | |
| = Buyer's equity | $3.9B | |
| Money multiple | 1.05× | on $3.7B put in |
| Buyer's yearly return (IRR) | 1.1% |
Price against return
What the buyer makes at other premiums over today's $37.56; the IRR reaches 20% at $24.82 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $41.32 | 5.2% |
| 20% | $45.07 | 3.0% |
| 30% | $48.83 | 1.1% |
| 40% | $52.58 | −0.7% |
| 50% | $56.34 | −2.2% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $666M | |
| EBITDA, last 12 months | $134M | 20.1% of revenue |
| Depreciation and amortization | $36.5M | |
| Capital spending | $38.9M | |
| Debt | $131M | |
| Cash | $41.0M | |
| Share price | $37.56 | on Oct 9, 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 18% 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, Knowles would cost about $48.83 a share, $4.3B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $42.07 | $3.7B |
| Median | 30% | $48.83 | $4.3B |
| High end (a quarter paid more) | 31% | $49.20 | $4.3B |
The odds, from history
Historically 7.4% of companies with its figures were bought within a year (1.46× the average). Its figures put it in decile 9 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.
Knowles' latest quarter
Knowles, Q3 2026: revenue $184M (+20% year over year), operating margin 16.7%, net earnings $21.6M, operating cash flow $44.6M. The chart follows the revenue to costs, profit and cash.
Questions
Is Knowles being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Knowles?
A leveraged buyout at today's price plus 30% ($48.83 a share) would return about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $24.82 a share (−34% against today's $37.56).
What would a takeover of Knowles 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, Knowles would cost about $48.83 a share, $4.3B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.