Filing Flows › Champion Homes (SKY) › Takeover & LBO
Is Champion Homes (SKY) a takeover target?
A leveraged buyout at today's price plus 30% ($110.11 a share) would return a loss of about 1% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 3.1% of companies with its figures were bought within a year (0.61× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $110.11 | today's $84.70 plus 30% |
| × shares | 54.5 million | |
| = Equity value | $6.0B | |
| + Debt refinanced | $12.4M | |
| − Cash | $703M | |
| = Enterprise value | $5.3B | 19.4× EBITDA of $274M |
| Fees | $106M | 2% of the price |
| New debt | $1.5B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $3.9B | 72% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.8B | $283M | $115M | $93.0M | $1.4B |
| Year 2 | $2.9B | $292M | $108M | $105M | $1.3B |
| Year 3 | $3.0B | $302M | $100M | $118M | $1.2B |
| Year 4 | $3.1B | $311M | $91.0M | $131M | $1.1B |
| Year 5 | $3.2B | $321M | $81.0M | $145M | $913M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 14.3× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $4.6B | |
| − Debt left | $913M | |
| = Buyer's equity | $3.7B | |
| Money multiple | 0.94× | on $3.9B put in |
| Buyer's yearly return (IRR) | −1.2% |
Price against return
What the buyer makes at other premiums over today's $84.70.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $93.17 | 4.4% |
| 20% | $101.64 | 1.4% |
| 30% | $110.11 | −1.2% |
| 40% | $118.58 | −3.4% |
| 50% | $127.05 | −5.3% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.7B | |
| EBITDA, last 12 months | $274M | 10.1% of revenue |
| Depreciation and amortization | $49.1M | |
| Capital spending | $38.2M | |
| Debt | $12.4M | |
| Cash | $703M | |
| Share price | $84.70 | 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 3.5% 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 22% 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, Champion Homes would cost about $112.23 a share, $6.1B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $101.64 | $5.5B |
| Median | 32.5% | $112.23 | $6.1B |
| High end (a quarter paid more) | 51.8% | $128.57 | $7.0B |
The odds, from history
Historically 3.1% of companies with its figures were bought within a year (0.61× the average). Its figures put it in decile 2 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.
Champion Homes' latest quarter
Champion Homes, Q2 FY27: revenue $727M (+6% year over year), operating margin 9.0%, net earnings $52.7M, operating cash flow $43.0M. The chart follows the revenue to costs, profit and cash.
Questions
Is Champion Homes being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Champion Homes?
A leveraged buyout at today's price plus 30% ($110.11 a share) would return a loss of about 1% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Champion Homes 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, Champion Homes would cost about $112.23 a share, $6.1B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.