Filing Flows › Mohawk Industries (MHK) › Takeover & LBO
Is Mohawk Industries (MHK) a takeover target?
A leveraged buyout at today's price plus 30% ($194.95 a share) would return about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $133.29 a share (−11% against today's $149.96). Historically 2.0% of companies with its figures were bought within a year (0.4× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $194.95 | today's $149.96 plus 30% |
| × shares | 60.0 million | |
| = Equity value | $11.7B | |
| + Debt refinanced | $2.0B | |
| − Cash | $817M | |
| + Other claims | $4.1M | preferred stock, minority interests |
| = Enterprise value | $12.9B | 10.0× EBITDA of $1.3B |
| Fees | $258M | 2% of the price |
| New debt | $7.1B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $6.1B | 46% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $11.7B | $1.3B | $543M | $253M | $6.8B |
| Year 2 | $12.2B | $1.4B | $523M | $303M | $6.5B |
| Year 3 | $12.7B | $1.5B | $500M | $355M | $6.2B |
| Year 4 | $13.1B | $1.5B | $473M | $410M | $5.8B |
| Year 5 | $13.5B | $1.6B | $442M | $466M | $5.3B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 7.9× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $12.3B | |
| − Debt left | $5.3B | |
| = Buyer's equity | $7.0B | |
| Money multiple | 1.15× | on $6.1B put in |
| Buyer's yearly return (IRR) | 2.8% |
Price against return
What the buyer makes at other premiums over today's $149.96; the IRR reaches 20% at $133.29 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $164.96 | 10.4% |
| 20% | $179.95 | 6.2% |
| 30% | $194.95 | 2.8% |
| 40% | $209.94 | −0.1% |
| 50% | $224.94 | −2.5% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $11.2B | |
| EBITDA, last 12 months | $1.3B | 11.5% of revenue |
| Depreciation and amortization | $668M | |
| Capital spending | $466M | |
| Debt | $2.0B | |
| Cash | $817M | |
| Share price | $149.96 | 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 4.5% 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 14% 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, Mohawk Industries would cost about $198.70 a share, $11.9B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $179.95 | $10.8B |
| Median | 32.5% | $198.70 | $11.9B |
| High end (a quarter paid more) | 51.8% | $227.64 | $13.7B |
The odds, from history
Historically 2.0% of companies with its figures were bought within a year (0.4× 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.
Mohawk Industries' latest quarter
Mohawk Industries, Q3 2026: revenue $2.8B (+1% year over year), operating margin 6.7%, net earnings $163M, operating cash flow $471M. The chart follows the revenue to costs, profit and cash.
Questions
Is Mohawk Industries being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Mohawk Industries?
A leveraged buyout at today's price plus 30% ($194.95 a share) would return about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $133.29 a share (−11% against today's $149.96).
What would a takeover of Mohawk Industries 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, Mohawk Industries would cost about $198.70 a share, $11.9B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.