Filing Flows › McCormick (MKC) › Takeover & LBO
Is McCormick (MKC) a takeover target?
A leveraged buyout at today's price plus 30% ($62.60 a share) would return about 6% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $37.26 a share (−23% against today's $48.15). Historically 3.1% of companies with its figures were bought within a year (0.61× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $62.60 | today's $48.15 plus 30% |
| × shares | 269.4 million | |
| = Equity value | $16.9B | |
| + Debt refinanced | $5.0B | |
| − Cash | $331M | |
| + Other claims | $584M | preferred stock, minority interests |
| = Enterprise value | $22.1B | 17.0× EBITDA of $1.3B |
| Fees | $443M | 2% of the price |
| New debt | $7.2B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $15.4B | 68% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $8.3B | $1.4B | $549M | $644M | $6.5B |
| Year 2 | $8.9B | $1.5B | $500M | $760M | $5.8B |
| Year 3 | $9.3B | $1.6B | $441M | $874M | $4.9B |
| Year 4 | $9.7B | $1.7B | $375M | $984M | $3.9B |
| Year 5 | $10.0B | $1.7B | $299M | $1.1B | $2.8B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 14.0× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $23.8B | |
| − Debt left | $2.8B | |
| = Buyer's equity | $21.0B | |
| Money multiple | 1.36× | on $15.4B put in |
| Buyer's yearly return (IRR) | 6.4% |
Price against return
What the buyer makes at other premiums over today's $48.15; the IRR reaches 20% at $37.26 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $52.97 | 10.5% |
| 20% | $57.78 | 8.3% |
| 30% | $62.60 | 6.4% |
| 40% | $67.42 | 4.7% |
| 50% | $72.23 | 3.1% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $7.7B | |
| EBITDA, last 12 months | $1.3B | 17.0% of revenue |
| Depreciation and amortization | $272M | |
| Debt | $5.0B | |
| Cash | $331M | |
| Share price | $48.15 | 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 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 27% 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, McCormick would cost about $63.80 a share, $17.2B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $57.78 | $15.6B |
| Median | 32.5% | $63.80 | $17.2B |
| High end (a quarter paid more) | 51.8% | $73.10 | $19.7B |
The odds, from history
Historically 3.1% of companies with its figures were bought within a year (0.61× the average). Its figures put it in decile 2 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.
McCormick's latest quarter
McCormick, Q3 FY26: revenue $2.0B (+17% year over year), operating margin 10.7%, net earnings $97.6M, operating cash flow $168M. The chart follows the revenue to costs, profit and cash.
Questions
Is McCormick being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy McCormick?
A leveraged buyout at today's price plus 30% ($62.60 a share) would return about 6% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $37.26 a share (−23% against today's $48.15).
What would a takeover of McCormick 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, McCormick would cost about $63.80 a share, $17.2B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.