Filing Flows › Materion (MTRN) › Takeover & LBO
Is Materion (MTRN) a takeover target?
A leveraged buyout at today's price plus 30% ($288.52 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 $144.51 a share (−35% against today's $221.94). Historically 5.1% of companies with its figures were bought within a year (1.02× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $288.52 | today's $221.94 plus 30% |
| × shares | 21.2 million | |
| = Equity value | $6.1B | |
| + Debt refinanced | $418M | |
| − Cash | $15.4M | |
| = Enterprise value | $6.5B | 30.1× EBITDA of $216M |
| Fees | $130M | 2% of the price |
| New debt | $1.2B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $5.5B | 82% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.4B | $233M | $90.9M | $43.1M | $1.1B |
| Year 2 | $2.6B | $249M | $87.6M | $57.1M | $1.1B |
| Year 3 | $2.7B | $263M | $83.2M | $71.3M | $1.0B |
| Year 4 | $2.8B | $274M | $77.8M | $85.4M | $931M |
| Year 5 | $2.9B | $282M | $71.2M | $99.2M | $832M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 23.6× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $6.7B | |
| − Debt left | $832M | |
| = Buyer's equity | $5.8B | |
| Money multiple | 1.07× | on $5.5B put in |
| Buyer's yearly return (IRR) | 1.3% |
Price against return
What the buyer makes at other premiums over today's $221.94; the IRR reaches 20% at $144.51 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $244.13 | 5.3% |
| 20% | $266.33 | 3.2% |
| 30% | $288.52 | 1.3% |
| 40% | $310.72 | −0.3% |
| 50% | $332.91 | −1.9% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.2B | |
| EBITDA, last 12 months | $216M | 9.7% of revenue |
| Depreciation and amortization | $74.9M | |
| Capital spending | $68.6M | |
| Debt | $418M | |
| Cash | $15.4M | |
| Share price | $221.94 | 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 12% 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 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Materion would cost about $310.72 a share, $6.6B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $254.57 | $5.4B |
| Median | 40% | $310.72 | $6.6B |
| High end (a quarter paid more) | 60.2% | $355.55 | $7.5B |
The odds, from history
Historically 5.1% of companies with its figures were bought within a year (1.02× the average). Its figures put it in decile 6 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.
Materion's latest quarter
Materion, Q3 2026: revenue $567M (+28% year over year), operating margin 8.9%, net earnings $38.3M, operating cash flow $72.2M. The chart follows the revenue to costs, profit and cash.
Questions
Is Materion being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Materion?
A leveraged buyout at today's price plus 30% ($288.52 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 $144.51 a share (−35% against today's $221.94).
What would a takeover of Materion cost?
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Materion would cost about $310.72 a share, $6.6B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.