Filing Flows › Snap-on (SNA) › Takeover & LBO
Is Snap-on (SNA) a takeover target?
A leveraged buyout at today's price plus 30% ($477.44 a share) would return about 0% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 2.5% of companies with its figures were bought within a year (0.49× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $477.44 | today's $367.26 plus 30% |
| × shares | 52.4 million | |
| = Equity value | $25.0B | |
| + Debt refinanced | $1.2B | |
| − Cash | $1.7B | |
| + Other claims | $25.0M | preferred stock, minority interests |
| = Enterprise value | $24.6B | 17.5× EBITDA of $1.4B |
| Fees | $492M | 2% of the price |
| New debt | $7.7B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $17.4B | 69% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $5.4B | $1.4B | $590M | $588M | $7.1B |
| Year 2 | $5.6B | $1.5B | $545M | $654M | $6.5B |
| Year 3 | $5.7B | $1.5B | $495M | $725M | $5.7B |
| Year 4 | $5.9B | $1.6B | $439M | $802M | $4.9B |
| Year 5 | $6.1B | $1.6B | $378M | $884M | $4.1B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 13.4× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $21.8B | |
| − Debt left | $4.1B | |
| = Buyer's equity | $17.7B | |
| Money multiple | 1.02× | on $17.4B put in |
| Buyer's yearly return (IRR) | 0.4% |
Price against return
What the buyer makes at other premiums over today's $367.26.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $403.99 | 5.7% |
| 20% | $440.71 | 2.8% |
| 30% | $477.44 | 0.4% |
| 40% | $514.16 | −1.7% |
| 50% | $550.89 | −3.6% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $5.3B | |
| EBITDA, last 12 months | $1.4B | 26.6% of revenue |
| Depreciation and amortization | $90.9M | |
| Capital spending | $82.5M | |
| Debt | $1.2B | |
| Cash | $1.7B | |
| Share price | $367.26 | 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 2.9% 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 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, Snap-on would cost about $514.16 a share, $26.9B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $421.25 | $22.1B |
| Median | 40% | $514.16 | $26.9B |
| High end (a quarter paid more) | 60.2% | $588.35 | $30.8B |
The odds, from history
Historically 2.5% of companies with its figures were bought within a year (0.49× 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.
Snap-on's latest quarter
Snap-on, Q3 2026: revenue $1.3B (-0.7% year over year), operating margin 24.7%, net earnings $243M, operating cash flow $248M. The chart follows the revenue to costs, profit and cash.
Questions
Is Snap-on being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Snap-on?
A leveraged buyout at today's price plus 30% ($477.44 a share) would return about 0% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Snap-on 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, Snap-on would cost about $514.16 a share, $26.9B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.