Filing Flows › Levi Strauss (LEVI) › Takeover & LBO
Is Levi Strauss (LEVI) a takeover target?
A leveraged buyout at today's price plus 30% ($29.72 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 $21.07 a share (−8% against today's $22.86). Historically 1.4% of companies with its figures were bought within a year (0.28× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $29.72 | today's $22.86 plus 30% |
| × shares | 390.6 million | |
| = Equity value | $11.6B | |
| + Debt refinanced | $1.0B | |
| − Cash | $779M | |
| = Enterprise value | $11.9B | 12.2× EBITDA of $976M |
| Fees | $237M | 2% of the price |
| New debt | $5.4B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $6.7B | 56% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $7.1B | $1.0B | $411M | $277M | $5.1B |
| Year 2 | $7.5B | $1.1B | $390M | $334M | $4.8B |
| Year 3 | $7.9B | $1.2B | $364M | $391M | $4.4B |
| Year 4 | $8.2B | $1.2B | $334M | $447M | $3.9B |
| Year 5 | $8.4B | $1.2B | $300M | $502M | $3.4B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 9.4× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $11.6B | |
| − Debt left | $3.4B | |
| = Buyer's equity | $8.2B | |
| Money multiple | 1.22× | on $6.7B put in |
| Buyer's yearly return (IRR) | 4.0% |
Price against return
What the buyer makes at other premiums over today's $22.86; the IRR reaches 20% at $21.07 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $25.15 | 10.8% |
| 20% | $27.43 | 7.1% |
| 30% | $29.72 | 4.0% |
| 40% | $32.00 | 1.4% |
| 50% | $34.29 | −0.9% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $6.7B | |
| EBITDA, last 12 months | $976M | 14.6% of revenue |
| Depreciation and amortization | $222M | |
| Capital spending | $209M | |
| Debt | $1.0B | |
| Cash | $779M | |
| Share price | $22.86 | 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 6.6% 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 22% 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, Levi Strauss would cost about $30.29 a share, $11.8B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $27.43 | $10.7B |
| Median | 32.5% | $30.29 | $11.8B |
| High end (a quarter paid more) | 51.8% | $34.70 | $13.6B |
The odds, from history
Historically 1.4% of companies with its figures were bought within a year (0.28× the average). Its figures put it in decile 1 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.
Levi Strauss' latest quarter
Levi Strauss, Q3 FY26: revenue $1.6B (+4% year over year), operating margin 13.8%, net earnings $169M, operating cash flow $103M. The chart follows the revenue to costs, profit and cash.
Questions
Is Levi Strauss being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Levi Strauss?
A leveraged buyout at today's price plus 30% ($29.72 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 $21.07 a share (−8% against today's $22.86).
What would a takeover of Levi Strauss 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, Levi Strauss would cost about $30.29 a share, $11.8B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.