Filing Flows › Sensient Technologies (SXT) › Takeover & LBO
Is Sensient Technologies (SXT) a takeover target?
A leveraged buyout at today's price plus 30% ($152.92 a share) would return about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $78.40 a share (−33% against today's $117.63). Historically 5.9% of companies with its figures were bought within a year (1.17× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $152.92 | today's $117.63 plus 30% |
| × shares | 42.8 million | |
| = Equity value | $6.5B | |
| + Debt refinanced | $709M | |
| − Cash | $42.6M | |
| = Enterprise value | $7.2B | 22.8× EBITDA of $317M |
| Fees | $144M | 2% of the price |
| New debt | $1.7B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $5.6B | 76% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.9B | $342M | $133M | $13.1M | $1.7B |
| Year 2 | $2.0B | $365M | $132M | $23.8M | $1.7B |
| Year 3 | $2.1B | $386M | $131M | $34.4M | $1.7B |
| Year 4 | $2.2B | $402M | $128M | $44.6M | $1.6B |
| Year 5 | $2.3B | $414M | $124M | $54.1M | $1.6B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 18.0× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $7.5B | |
| − Debt left | $1.6B | |
| = Buyer's equity | $5.9B | |
| Money multiple | 1.05× | on $5.6B put in |
| Buyer's yearly return (IRR) | 0.9% |
Price against return
What the buyer makes at other premiums over today's $117.63; the IRR reaches 20% at $78.40 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $129.39 | 5.1% |
| 20% | $141.16 | 2.9% |
| 30% | $152.92 | 0.9% |
| 40% | $164.68 | −0.8% |
| 50% | $176.44 | −2.4% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.7B | |
| EBITDA, last 12 months | $317M | 18.1% of revenue |
| Depreciation and amortization | $62.9M | |
| Capital spending | $137M | |
| Debt | $709M | |
| Cash | $42.6M | |
| Share price | $117.63 | 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, Sensient Technologies would cost about $155.86 a share, $6.7B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $141.16 | $6.0B |
| Median | 32.5% | $155.86 | $6.7B |
| High end (a quarter paid more) | 51.8% | $178.56 | $7.6B |
The odds, from history
Historically 5.9% of companies with its figures were bought within a year (1.17× the average). Its figures put it in decile 8 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.
Sensient Technologies' latest quarter
Sensient Technologies, Q3 2026: revenue $456M (+11% year over year), operating margin 15.9%, net earnings $48.3M, operating cash flow $40.5M. The chart follows the revenue to costs, profit and cash.
Questions
Is Sensient Technologies being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Sensient Technologies?
A leveraged buyout at today's price plus 30% ($152.92 a share) would return about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $78.40 a share (−33% against today's $117.63).
What would a takeover of Sensient Technologies 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, Sensient Technologies would cost about $155.86 a share, $6.7B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.