Filing Flows › Pyxus International (PYYX) › Takeover & LBO
Is Pyxus International (PYYX) a takeover target?
A leveraged buyout at today's price plus 30% ($3.29 a share) would return about 9% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. It already carries 7.3× EBITDA in net debt (the model flags anything over 6×), so a buyer could add little debt of its own.
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $3.29 | today's $2.53 plus 30% |
| × shares | 26.2 million | |
| = Equity value | $86.1M | |
| + Debt refinanced | $1.3B | |
| − Cash | $96.6M | |
| + Other claims | $6.4M | preferred stock, minority interests |
| = Enterprise value | $1.3B | 7.8× EBITDA of $172M |
| Fees | $26.8M | 2% of the price |
| New debt | $873M | 5.1× EBITDA at 7.65% a year; the limit that binds: 65% of the price |
| Buyer's own money | $497M | 36% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.3B | $168M | $66.8M | $51.7M | $821M |
| Year 2 | $2.2B | $167M | $62.8M | $53.5M | $767M |
| Year 3 | $2.2B | $168M | $58.7M | $55.9M | $712M |
| Year 4 | $2.3B | $170M | $54.4M | $57.6M | $654M |
| Year 5 | $2.3B | $175M | $50.0M | $60.6M | $593M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 7.7× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $1.3B | |
| − Debt left | $593M | |
| = Buyer's equity | $753M | |
| Money multiple | 1.52× | on $497M put in |
| Buyer's yearly return (IRR) | 8.7% |
Price against return
What the buyer makes at other premiums over today's $2.53.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $2.78 | 9.2% |
| 20% | $3.04 | 9.0% |
| 30% | $3.29 | 8.7% |
| 40% | $3.54 | 8.4% |
| 50% | $3.79 | 8.2% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.3B | |
| EBITDA, last 12 months | $172M | 7.5% of revenue |
| Depreciation and amortization | $21.7M | |
| Capital spending | $26.5M | |
| Debt | $1.3B | |
| Cash | $96.6M | |
| Share price | $2.53 | 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 -2.2% 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 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 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, Pyxus International would cost about $3.54 a share, $92.7M for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $2.90 | $76.0M |
| Median | 40% | $3.54 | $92.7M |
| High end (a quarter paid more) | 60.2% | $4.05 | $106M |
Pyxus International's latest quarter
Pyxus International, Q2 FY27: revenue $534M (-6% year over year), operating margin 7.5%, net earnings $4.0M, operating cash flow −$142M. The chart follows the revenue to costs, profit and cash.
Questions
Is Pyxus International being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Pyxus International?
A leveraged buyout at today's price plus 30% ($3.29 a share) would return about 9% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. It already carries 7.3× EBITDA in net debt (the model flags anything over 6×), so a buyer could add little debt of its own.
What would a takeover of Pyxus International 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, Pyxus International would cost about $3.54 a share, $92.7M for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.