Filing Flows › Westlake (WLK) › Takeover & LBO
Is Westlake (WLK) a takeover target?
A leveraged buyout at today's price plus 30% ($83.51 a share) would return a loss of about 10% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $21.14 a share (−67% against today's $64.24). Historically 2.4% 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 | $83.51 | today's $64.24 plus 30% |
| × shares | 128.0 million | |
| = Equity value | $10.7B | |
| + Debt refinanced | $5.1B | |
| − Cash | $2.0B | |
| + Other claims | $506M | preferred stock, minority interests |
| = Enterprise value | $14.3B | 19.8× EBITDA of $721M |
| Fees | $286M | 2% of the price |
| New debt | $4.0B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $10.6B | 73% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $11.4B | $718M | $303M | −$414M | $4.4B |
| Year 2 | $11.4B | $722M | $335M | −$451M | $4.8B |
| Year 3 | $11.6B | $731M | $370M | −$497M | $5.3B |
| Year 4 | $11.8B | $747M | $408M | −$548M | $5.9B |
| Year 5 | $12.2B | $769M | $449M | −$603M | $6.5B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 16.4× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $12.6B | |
| − Debt left | $6.5B | |
| = Buyer's equity | $6.1B | |
| Money multiple | 0.58× | on $10.6B put in |
| Buyer's yearly return (IRR) | −10.4% |
Price against return
What the buyer makes at other premiums over today's $64.24; the IRR reaches 20% at $21.14 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $70.66 | −7.2% |
| 20% | $77.09 | −8.9% |
| 30% | $83.51 | −10.4% |
| 40% | $89.94 | −11.7% |
| 50% | $96.36 | −13.0% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $11.4B | |
| EBITDA, last 12 months | $721M | 6.3% of revenue |
| Depreciation and amortization | $1.2B | |
| Capital spending | $832M | |
| Debt | $5.1B | |
| Cash | $2.0B | |
| Share price | $64.24 | 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 -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 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, Westlake would cost about $85.12 a share, $10.9B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $77.09 | $9.9B |
| Median | 32.5% | $85.12 | $10.9B |
| High end (a quarter paid more) | 51.8% | $97.52 | $12.5B |
The odds, from history
Historically 2.4% of companies with its figures were bought within a year (0.49× 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.
Westlake's latest quarter
Westlake, Q3 2026: revenue $3.0B (+5% year over year), operating margin 1.4%, net earnings $18.0M, operating cash flow $395M. The chart follows the revenue to costs, profit and cash.
Questions
Is Westlake being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Westlake?
A leveraged buyout at today's price plus 30% ($83.51 a share) would return a loss of about 10% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $21.14 a share (−67% against today's $64.24).
What would a takeover of Westlake 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, Westlake would cost about $85.12 a share, $10.9B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.