Filing Flows › Stepan (SCL) › Takeover & LBO
Is Stepan (SCL) a takeover target?
A leveraged buyout at today's price plus 30% ($90.49 a share) would return a loss of about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $42.85 a share (−38% against today's $69.61). Historically 4.2% of companies with its figures were bought within a year (0.83× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $90.49 | today's $69.61 plus 30% |
| × shares | 23.0 million | |
| = Equity value | $2.1B | |
| + Debt refinanced | $634M | |
| − Cash | $98.1M | |
| = Enterprise value | $2.6B | 17.2× EBITDA of $152M |
| Fees | $52.3M | 2% of the price |
| New debt | $836M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $1.8B | 69% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.7B | $164M | $63.9M | −$39.0M | $875M |
| Year 2 | $2.9B | $175M | $66.9M | −$37.1M | $912M |
| Year 3 | $3.1B | $185M | $69.8M | −$34.9M | $947M |
| Year 4 | $3.2B | $193M | $72.4M | −$32.4M | $979M |
| Year 5 | $3.3B | $198M | $74.9M | −$29.9M | $1.0B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 14.1× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $2.8B | |
| − Debt left | $1.0B | |
| = Buyer's equity | $1.8B | |
| Money multiple | 0.97× | on $1.8B put in |
| Buyer's yearly return (IRR) | −0.6% |
Price against return
What the buyer makes at other premiums over today's $69.61; the IRR reaches 20% at $42.85 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $76.57 | 3.4% |
| 20% | $83.53 | 1.3% |
| 30% | $90.49 | −0.6% |
| 40% | $97.45 | −2.3% |
| 50% | $104.41 | −3.8% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.5B | |
| EBITDA, last 12 months | $152M | 6.0% of revenue |
| Depreciation and amortization | $128M | |
| Capital spending | $110M | |
| Debt | $634M | |
| Cash | $98.1M | |
| Share price | $69.61 | 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 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 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 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, Stepan would cost about $92.23 a share, $2.1B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $83.53 | $1.9B |
| Median | 32.5% | $92.23 | $2.1B |
| High end (a quarter paid more) | 51.8% | $105.67 | $2.4B |
The odds, from history
Historically 4.2% of companies with its figures were bought within a year (0.83× the average). Its figures put it in decile 4 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.
Stepan's latest quarter
Stepan, Q3 2026: revenue $692M (+17% year over year), operating margin 3.8%, net earnings $17.8M, operating cash flow $29.3M. The chart follows the revenue to costs, profit and cash.
Questions
Is Stepan being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Stepan?
A leveraged buyout at today's price plus 30% ($90.49 a share) would return a loss of about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $42.85 a share (−38% against today's $69.61).
What would a takeover of Stepan 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, Stepan would cost about $92.23 a share, $2.1B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.