Filing Flows › Steris (STE) › Takeover & LBO
Is Steris (STE) a takeover target?
A leveraged buyout at today's price plus 30% ($329.03 a share) would return about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $193.10 a share (−24% against today's $253.10). Historically 2.0% of companies with its figures were bought within a year (0.39× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $329.03 | today's $253.10 plus 30% |
| × shares | 97.6 million | |
| = Equity value | $32.1B | |
| + Debt refinanced | $1.9B | |
| − Cash | $531M | |
| + Other claims | $14.4M | preferred stock, minority interests |
| = Enterprise value | $33.5B | 20.1× EBITDA of $1.7B |
| Fees | $670M | 2% of the price |
| New debt | $9.2B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $25.0B | 73% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $6.7B | $1.8B | $701M | $520M | $8.6B |
| Year 2 | $7.1B | $1.9B | $661M | $627M | $8.0B |
| Year 3 | $7.5B | $2.0B | $613M | $732M | $7.3B |
| Year 4 | $7.8B | $2.1B | $557M | $833M | $6.4B |
| Year 5 | $8.1B | $2.2B | $493M | $927M | $5.5B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 15.7× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $34.1B | |
| − Debt left | $5.5B | |
| = Buyer's equity | $28.5B | |
| Money multiple | 1.14× | on $25.0B put in |
| Buyer's yearly return (IRR) | 2.7% |
Price against return
What the buyer makes at other premiums over today's $253.10; the IRR reaches 20% at $193.10 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $278.41 | 7.4% |
| 20% | $303.72 | 4.9% |
| 30% | $329.03 | 2.7% |
| 40% | $354.34 | 0.7% |
| 50% | $379.65 | −1.0% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $6.2B | |
| EBITDA, last 12 months | $1.7B | 27.0% of revenue |
| Depreciation and amortization | $495M | |
| Capital spending | $352M | |
| Debt | $1.9B | |
| Cash | $531M | |
| Share price | $253.10 | 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 26% 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 35% over the share price before the deal (the middle half 22% to 45%), according to the 15 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Steris would cost about $341.69 a share, $33.3B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 22% | $308.78 | $30.1B |
| Median | 35% | $341.69 | $33.3B |
| High end (a quarter paid more) | 45% | $367.00 | $35.8B |
The odds, from history
Historically 2.0% of companies with its figures were bought within a year (0.39× 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.
Steris' latest quarter
Steris, Q2 FY27: revenue $1.6B (+9% year over year), operating margin 18.5%, net earnings $214M, operating cash flow $289M. The chart follows the revenue to costs, profit and cash.
Questions
Is Steris being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Steris?
A leveraged buyout at today's price plus 30% ($329.03 a share) would return about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $193.10 a share (−24% against today's $253.10).
What would a takeover of Steris cost?
Takeovers in its sector paid a median premium of 35% over the share price before the deal (the middle half 22% to 45%), according to the 15 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Steris would cost about $341.69 a share, $33.3B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.