Filing Flows › Photronics (PLAB) › Takeover & LBO
Is Photronics (PLAB) a takeover target?
A leveraged buyout at today's price plus 30% ($38.01 a share) would return a loss of about 37% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 6.0% of companies with its figures were bought within a year (1.19× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $38.01 | today's $29.24 plus 30% |
| × shares | 58.7 million | |
| = Equity value | $2.2B | |
| + Debt refinanced | $3.9M | |
| − Cash | $673M | |
| = Enterprise value | $1.6B | 5.7× EBITDA of $273M |
| Fees | $31.3M | 2% of the price |
| New debt | $1.0B | 3.7× EBITDA at 7.65% a year; the limit that binds: 65% of the price |
| Buyer's own money | $578M | 36% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $878M | $277M | $77.7M | −$16.9M | $1.0B |
| Year 2 | $892M | $282M | $79.0M | −$17.5M | $1.1B |
| Year 3 | $911M | $288M | $80.4M | −$18.0M | $1.1B |
| Year 4 | $935M | $295M | $81.7M | −$18.2M | $1.1B |
| Year 5 | $963M | $304M | $83.1M | −$18.2M | $1.1B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 3.8× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $1.2B | |
| − Debt left | $1.1B | |
| = Buyer's equity | $59.2M | |
| Money multiple | 0.10× | on $578M put in |
| Buyer's yearly return (IRR) | −36.6% |
Price against return
What the buyer makes at other premiums over today's $29.24.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $32.16 | −4.0% |
| 20% | $35.09 | −16.1% |
| 30% | $38.01 | −36.6% |
| 40% | $40.94 | −100.0% |
| 50% | $43.86 | −100.0% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $867M | |
| EBITDA, last 12 months | $273M | 31.6% of revenue |
| Depreciation and amortization | $78.8M | |
| Capital spending | $198M | |
| Debt | $3.9M | |
| Cash | $673M | |
| Share price | $29.24 | on Oct 12, 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 1.2% 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 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Photronics would cost about $38.01 a share, $2.2B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $32.75 | $1.9B |
| Median | 30% | $38.01 | $2.2B |
| High end (a quarter paid more) | 31% | $38.30 | $2.2B |
The odds, from history
Historically 6.0% of companies with its figures were bought within a year (1.19× the average). Its figures put it in decile 8 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.
Photronics' latest quarter
Photronics, Q3 FY26: revenue $216M (+3% year over year), operating margin 21.1%, net earnings $28.9M, operating cash flow $76.3M. The chart follows the revenue to costs, profit and cash.
Questions
Is Photronics being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Photronics?
A leveraged buyout at today's price plus 30% ($38.01 a share) would return a loss of about 37% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Photronics cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Photronics would cost about $38.01 a share, $2.2B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.