Filing Flows › Pilgrims Pride (PPC) › Takeover & LBO
Is Pilgrims Pride (PPC) a takeover target?
A leveraged buyout at today's price plus 30% ($37.21 a share) would return a loss of about 5% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $18.62 a share (−35% against today's $28.62). Historically 3.7% of companies with its figures were bought within a year (0.73× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $37.21 | today's $28.62 plus 30% |
| × shares | 239.0 million | |
| = Equity value | $8.9B | |
| + Debt refinanced | $3.4B | |
| − Cash | $936M | |
| + Other claims | $12.3M | preferred stock, minority interests |
| = Enterprise value | $11.4B | 10.2× EBITDA of $1.1B |
| Fees | $228M | 2% of the price |
| New debt | $6.1B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $5.5B | 47% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $18.3B | $1.1B | $467M | $86.6M | $6.0B |
| Year 2 | $18.4B | $1.1B | $461M | $81.9M | $5.9B |
| Year 3 | $18.7B | $1.1B | $454M | $77.9M | $5.9B |
| Year 4 | $19.1B | $1.2B | $449M | $76.4M | $5.8B |
| Year 5 | $19.7B | $1.2B | $443M | $77.7M | $5.7B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 8.4× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $10.0B | |
| − Debt left | $5.7B | |
| = Buyer's equity | $4.3B | |
| Money multiple | 0.78× | on $5.5B put in |
| Buyer's yearly return (IRR) | −4.8% |
Price against return
What the buyer makes at other premiums over today's $28.62; the IRR reaches 20% at $18.62 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $31.48 | 1.0% |
| 20% | $34.34 | −2.1% |
| 30% | $37.21 | −4.8% |
| 40% | $40.07 | −7.0% |
| 50% | $42.93 | −9.0% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $18.3B | |
| EBITDA, last 12 months | $1.1B | 6.1% of revenue |
| Depreciation and amortization | $487M | |
| Capital spending | $509M | |
| Debt | $3.4B | |
| Cash | $936M | |
| Share price | $28.62 | 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 -0.1% 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 30% 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, Pilgrims Pride would cost about $37.92 a share, $9.1B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $34.34 | $8.2B |
| Median | 32.5% | $37.92 | $9.1B |
| High end (a quarter paid more) | 51.8% | $43.45 | $10.4B |
The odds, from history
Historically 3.7% of companies with its figures were bought within a year (0.73× the average). Its figures put it in decile 3 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.
Pilgrims Pride's latest quarter
Pilgrims Pride, Q3 2026: revenue $4.7B (-2% year over year), operating margin 4.1%, net earnings $116M, operating cash flow $212M. The chart follows the revenue to costs, profit and cash.
Questions
Is Pilgrims Pride being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Pilgrims Pride?
A leveraged buyout at today's price plus 30% ($37.21 a share) would return a loss of about 5% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $18.62 a share (−35% against today's $28.62).
What would a takeover of Pilgrims Pride 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, Pilgrims Pride would cost about $37.92 a share, $9.1B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.