Filing Flows › Regal Rexnord (RRX) › Takeover & LBO
Is Regal Rexnord (RRX) a takeover target?
A leveraged buyout at today's price plus 30% ($217.52 a share) would return about 4% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $121.33 a share (−27% against today's $167.32).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $217.52 | today's $167.32 plus 30% |
| × shares | 66.6 million | |
| = Equity value | $14.5B | |
| + Debt refinanced | $4.5B | |
| − Cash | $450M | |
| + Other claims | $8.4M | preferred stock, minority interests |
| = Enterprise value | $18.5B | 16.7× EBITDA of $1.1B |
| Fees | $370M | 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 | $12.8B | 68% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $6.4B | $1.2B | $466M | $521M | $5.6B |
| Year 2 | $6.7B | $1.2B | $427M | $589M | $5.0B |
| Year 3 | $7.0B | $1.3B | $381M | $660M | $4.3B |
| Year 4 | $7.2B | $1.3B | $331M | $732M | $3.6B |
| Year 5 | $7.4B | $1.3B | $275M | $805M | $2.8B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 13.7× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $18.3B | |
| − Debt left | $2.8B | |
| = Buyer's equity | $15.5B | |
| Money multiple | 1.22× | on $12.8B put in |
| Buyer's yearly return (IRR) | 4.0% |
Price against return
What the buyer makes at other premiums over today's $167.32; the IRR reaches 20% at $121.33 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $184.05 | 8.1% |
| 20% | $200.78 | 5.9% |
| 30% | $217.52 | 4.0% |
| 40% | $234.25 | 2.2% |
| 50% | $250.98 | 0.6% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $6.1B | |
| EBITDA, last 12 months | $1.1B | 18.0% of revenue |
| Depreciation and amortization | $495M | |
| Capital spending | $93.2M | |
| Debt | $4.5B | |
| Cash | $450M | |
| Share price | $167.32 | 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 4.7% 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 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, Regal Rexnord would cost about $234.25 a share, $15.6B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $191.92 | $12.8B |
| Median | 40% | $234.25 | $15.6B |
| High end (a quarter paid more) | 60.2% | $268.05 | $17.9B |
Regal Rexnord's latest quarter
Regal Rexnord, Q3 2026: revenue $1.6B (+6% year over year), operating margin 5.1%, net loss $12.3M, operating cash flow $220M. The chart follows the revenue to costs, profit and cash.
Questions
Is Regal Rexnord being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Regal Rexnord?
A leveraged buyout at today's price plus 30% ($217.52 a share) would return about 4% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $121.33 a share (−27% against today's $167.32).
What would a takeover of Regal Rexnord 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, Regal Rexnord would cost about $234.25 a share, $15.6B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.