Filing Flows › Vestis (VSTS) › Takeover & LBO
Is Vestis (VSTS) a takeover target?
A leveraged buyout at today's price plus 30% ($19.28 a share) would return a loss of about 0% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $8.44 a share (−43% against today's $14.83). Historically 6.1% of companies with its figures were bought within a year (1.22× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $19.28 | today's $14.83 plus 30% |
| × shares | 134.3 million | |
| = Equity value | $2.6B | |
| + Debt refinanced | $1.2B | |
| − Cash | $57.7M | |
| = Enterprise value | $3.7B | 15.7× EBITDA of $236M |
| Fees | $74.0M | 2% of the price |
| New debt | $1.3B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $2.5B | 66% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.7B | $235M | $99.2M | $80.5M | $1.2B |
| Year 2 | $2.7B | $236M | $93.0M | $85.1M | $1.1B |
| Year 3 | $2.7B | $239M | $86.5M | $90.1M | $1.0B |
| Year 4 | $2.8B | $244M | $79.6M | $96.6M | $944M |
| Year 5 | $2.9B | $251M | $72.3M | $105M | $840M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 13.2× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $3.3B | |
| − Debt left | $840M | |
| = Buyer's equity | $2.5B | |
| Money multiple | 1.00× | on $2.5B put in |
| Buyer's yearly return (IRR) | −0.1% |
Price against return
What the buyer makes at other premiums over today's $14.83; the IRR reaches 20% at $8.44 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $16.31 | 3.6% |
| 20% | $17.80 | 1.7% |
| 30% | $19.28 | −0.1% |
| 40% | $20.76 | −1.6% |
| 50% | $22.25 | −3.1% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.7B | |
| EBITDA, last 12 months | $236M | 8.7% of revenue |
| Depreciation and amortization | $138M | |
| Capital spending | $55.4M | |
| Debt | $1.2B | |
| Cash | $57.7M | |
| Share price | $14.83 | 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 -0.4% 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 21% 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, Vestis would cost about $20.76 a share, $2.8B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $17.01 | $2.3B |
| Median | 40% | $20.76 | $2.8B |
| High end (a quarter paid more) | 60.2% | $23.76 | $3.2B |
The odds, from history
Historically 6.1% of companies with its figures were bought within a year (1.22× 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.
Vestis' latest quarter
Vestis, Q3 FY26: revenue $662M (-2% year over year), operating margin 5.6%, net earnings $11.0M, operating cash flow $64.9M. The chart follows the revenue to costs, profit and cash.
Questions
Is Vestis being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Vestis?
A leveraged buyout at today's price plus 30% ($19.28 a share) would return a loss of about 0% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $8.44 a share (−43% against today's $14.83).
What would a takeover of Vestis 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, Vestis would cost about $20.76 a share, $2.8B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.