Filing Flows › Tennant (TNC) › Takeover & LBO
Is Tennant (TNC) a takeover target?
A leveraged buyout at today's price plus 30% ($86.37 a share) would return a loss of about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $42.29 a share (−36% against today's $66.44). Historically 5.8% of companies with its figures were bought within a year (1.15× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $86.37 | today's $66.44 plus 30% |
| × shares | 17.2 million | |
| = Equity value | $1.5B | |
| + Debt refinanced | $274M | |
| − Cash | $76.9M | |
| + Other claims | $1.8M | preferred stock, minority interests |
| = Enterprise value | $1.7B | 17.0× EBITDA of $98.8M |
| Fees | $33.6M | 2% of the price |
| New debt | $543M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $1.2B | 68% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.2B | $95.9M | $41.6M | $35.5M | $508M |
| Year 2 | $1.2B | $94.5M | $38.9M | $37.1M | $471M |
| Year 3 | $1.2B | $94.6M | $36.0M | $39.6M | $431M |
| Year 4 | $1.2B | $96.0M | $33.0M | $41.2M | $390M |
| Year 5 | $1.2B | $98.9M | $29.8M | $43.8M | $346M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 13.6× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $1.3B | |
| − Debt left | $346M | |
| = Buyer's equity | $995M | |
| Money multiple | 0.85× | on $1.2B put in |
| Buyer's yearly return (IRR) | −3.2% |
Price against return
What the buyer makes at other premiums over today's $66.44; the IRR reaches 20% at $42.29 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $73.08 | 1.2% |
| 20% | $79.73 | −1.2% |
| 30% | $86.37 | −3.2% |
| 40% | $93.02 | −5.0% |
| 50% | $99.66 | −6.7% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.2B | |
| EBITDA, last 12 months | $98.8M | 8.1% of revenue |
| Depreciation and amortization | $59.9M | |
| Capital spending | $19.4M | |
| Debt | $274M | |
| Cash | $76.9M | |
| Share price | $66.44 | 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 -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 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 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, Tennant would cost about $93.02 a share, $1.6B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $76.21 | $1.3B |
| Median | 40% | $93.02 | $1.6B |
| High end (a quarter paid more) | 60.2% | $106.44 | $1.8B |
The odds, from history
Historically 5.8% of companies with its figures were bought within a year (1.15× the average). Its figures put it in decile 7 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.
Tennant's latest quarter
Tennant, Q3 2026: revenue $322M (+6% year over year), operating margin 9.7%, net earnings $19.5M, operating cash flow $11.9M. The chart follows the revenue to costs, profit and cash.
Questions
Is Tennant being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Tennant?
A leveraged buyout at today's price plus 30% ($86.37 a share) would return a loss of about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $42.29 a share (−36% against today's $66.44).
What would a takeover of Tennant 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, Tennant would cost about $93.02 a share, $1.6B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.