Filing Flows › Kronos Worldwide (KRO) › Takeover & LBO
Is Kronos Worldwide (KRO) a takeover target?
A leveraged buyout at today's price plus 30% ($9.75 a share) would return about 4% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $5.07 a share (−32% against today's $7.50). Historically 6.8% of companies with its figures were bought within a year (1.36× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $9.75 | today's $7.50 plus 30% |
| × shares | 115.1 million | |
| = Equity value | $1.1B | |
| + Debt refinanced | $540M | |
| − Cash | $32.1M | |
| = Enterprise value | $1.6B | 15.2× EBITDA of $107M |
| Fees | $32.6M | 2% of the price |
| New debt | $591M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $1.1B | 64% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.2B | $116M | $45.2M | $7.5M | $583M |
| Year 2 | $2.3B | $124M | $44.6M | $13.4M | $570M |
| Year 3 | $2.5B | $131M | $43.6M | $19.7M | $550M |
| Year 4 | $2.6B | $136M | $42.1M | $26.1M | $524M |
| Year 5 | $2.6B | $140M | $40.1M | $32.5M | $491M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 12.8× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $1.8B | |
| − Debt left | $491M | |
| = Buyer's equity | $1.3B | |
| Money multiple | 1.21× | on $1.1B put in |
| Buyer's yearly return (IRR) | 3.9% |
Price against return
What the buyer makes at other premiums over today's $7.50; the IRR reaches 20% at $5.07 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $8.25 | 7.7% |
| 20% | $9.00 | 5.7% |
| 30% | $9.75 | 3.9% |
| 40% | $10.50 | 2.3% |
| 50% | $11.25 | 0.8% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.0B | |
| EBITDA, last 12 months | $107M | 5.3% of revenue |
| Depreciation and amortization | $62.4M | |
| Capital spending | $42.9M | |
| Debt | $540M | |
| Cash | $32.1M | |
| Share price | $7.50 | 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 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 21% 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, Kronos Worldwide would cost about $9.94 a share, $1.1B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $9.00 | $1.0B |
| Median | 32.5% | $9.94 | $1.1B |
| High end (a quarter paid more) | 51.8% | $11.38 | $1.3B |
The odds, from history
Historically 6.8% of companies with its figures were bought within a year (1.36× 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.
Kronos Worldwide's latest quarter
Kronos Worldwide, Q3 2026: revenue $541M (+18% year over year), operating margin 10.7%, net earnings $34.8M, operating cash flow $52.9M. The chart follows the revenue to costs, profit and cash.
Questions
Is Kronos Worldwide being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Kronos Worldwide?
A leveraged buyout at today's price plus 30% ($9.75 a share) would return about 4% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $5.07 a share (−32% against today's $7.50).
What would a takeover of Kronos Worldwide 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, Kronos Worldwide would cost about $9.94 a share, $1.1B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.