Filing Flows › Sanmina (SANM) › Takeover & LBO
Is Sanmina (SANM) a takeover target?
A leveraged buyout at today's price plus 30% ($173.37 a share) would return a loss of about 0% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $106.18 a share (−20% against today's $133.36). Historically 2.2% of companies with its figures were bought within a year (0.44× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $173.37 | today's $133.36 plus 30% |
| × shares | 55.1 million | |
| = Equity value | $9.6B | |
| + Debt refinanced | $2.2B | |
| − Cash | $1.8B | |
| = Enterprise value | $9.9B | 14.2× EBITDA of $695M |
| Fees | $198M | 2% of the price |
| New debt | $3.8B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $6.3B | 62% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $13.8B | $750M | $292M | −$55.8M | $3.9B |
| Year 2 | $14.7B | $801M | $297M | −$32.5M | $3.9B |
| Year 3 | $15.5B | $845M | $299M | −$7.2M | $3.9B |
| Year 4 | $16.2B | $881M | $300M | $19.6M | $3.9B |
| Year 5 | $16.7B | $907M | $298M | $47.0M | $3.9B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 11.1× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $10.0B | |
| − Debt left | $3.9B | |
| = Buyer's equity | $6.2B | |
| Money multiple | 0.99× | on $6.3B put in |
| Buyer's yearly return (IRR) | −0.3% |
Price against return
What the buyer makes at other premiums over today's $133.36; the IRR reaches 20% at $106.18 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $146.70 | 5.4% |
| 20% | $160.03 | 2.3% |
| 30% | $173.37 | −0.3% |
| 40% | $186.70 | −2.5% |
| 50% | $200.04 | −4.5% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $12.8B | |
| EBITDA, last 12 months | $695M | 5.4% of revenue |
| Depreciation and amortization | $164M | |
| Capital spending | $307M | |
| Debt | $2.2B | |
| Cash | $1.8B | |
| Share price | $133.36 | 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 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 29% 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, Sanmina would cost about $173.37 a share, $9.6B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $149.36 | $8.2B |
| Median | 30% | $173.37 | $9.6B |
| High end (a quarter paid more) | 31% | $174.70 | $9.6B |
The odds, from history
Historically 2.2% of companies with its figures were bought within a year (0.44× the average). Its figures put it in decile 1 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.
Sanmina's latest quarter
Sanmina, Q3 FY26: revenue $3.5B (+70% year over year), operating margin 6.4%, net earnings $117M, operating cash flow $124M. The chart follows the revenue to costs, profit and cash.
Questions
Is Sanmina being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Sanmina?
A leveraged buyout at today's price plus 30% ($173.37 a share) would return a loss of about 0% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $106.18 a share (−20% against today's $133.36).
What would a takeover of Sanmina 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, Sanmina would cost about $173.37 a share, $9.6B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.