Filing Flows › Seneca Foods (SENEA) › Takeover & LBO
Is Seneca Foods (SENEA) a takeover target?
A leveraged buyout at today's price plus 30% ($207.71 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 $125.80 a share (−21% against today's $159.78).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $207.71 | today's $159.78 plus 30% |
| × shares | 7.0 million | |
| = Equity value | $1.4B | |
| + Debt refinanced | $370M | |
| − Cash | $42.7M | |
| + Other claims | $346K | preferred stock, minority interests |
| = Enterprise value | $1.8B | 14.5× EBITDA of $123M |
| Fees | $35.5M | 2% of the price |
| New debt | $674M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $1.1B | 63% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.7B | $132M | $51.6M | $20.1M | $654M |
| Year 2 | $1.8B | $141M | $50.0M | $27.2M | $627M |
| Year 3 | $1.9B | $149M | $47.9M | $34.5M | $592M |
| Year 4 | $2.0B | $155M | $45.3M | $41.7M | $551M |
| Year 5 | $2.1B | $160M | $42.1M | $48.8M | $502M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 11.8× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $1.9B | |
| − Debt left | $502M | |
| = Buyer's equity | $1.4B | |
| Money multiple | 1.21× | on $1.1B put in |
| Buyer's yearly return (IRR) | 4.0% |
Price against return
What the buyer makes at other premiums over today's $159.78; the IRR reaches 20% at $125.80 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $175.76 | 8.7% |
| 20% | $191.74 | 6.2% |
| 30% | $207.71 | 4.0% |
| 40% | $223.69 | 2.0% |
| 50% | $239.67 | 0.2% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.6B | |
| EBITDA, last 12 months | $123M | 7.8% of revenue |
| Depreciation and amortization | $44.8M | |
| Capital spending | $37.2M | |
| Debt | $370M | |
| Cash | $42.7M | |
| Share price | $159.78 | 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 24% 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, Seneca Foods would cost about $211.71 a share, $1.5B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $191.74 | $1.3B |
| Median | 32.5% | $211.71 | $1.5B |
| High end (a quarter paid more) | 51.8% | $242.55 | $1.7B |
Seneca Foods' latest quarter
Seneca Foods, Q2 FY27: revenue $493M (+7% year over year), operating margin 7.6%, net earnings $29.2M, operating cash flow −$27.9M. The chart follows the revenue to costs, profit and cash.
Questions
Is Seneca Foods being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Seneca Foods?
A leveraged buyout at today's price plus 30% ($207.71 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 $125.80 a share (−21% against today's $159.78).
What would a takeover of Seneca Foods 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, Seneca Foods would cost about $211.71 a share, $1.5B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.