Assume: Aldi’s current stock price is $50 and it has 300M sh…
Assume: Aldi’s current stock price is $50 and it has 300M shares outstanding Assume that Woodman’s made an offer for Aldi in 2021. Woodman’s stock at that time traded at $90 per share. Woodman’s had130M shares outstanding, debt of $7,000M and excess cash of $500M. Aldi’s LTM EBITDA is$1,663M, and its forward EBITDA is $1,728M. Aldi’s forward (2018E) EPS is $4.54, and Woodman’s is $8.41 Assume the deal happened Dec 30,2021. Synergies are expected to be $200M. Both companies have a WACC of 8% and a cost of equity of 10%. Analysis of precedent transactions shows that the median transaction EV/LTM EBITDA multiple for similar deals has been 12.5x. If Woodman’s acquisition of Aldi resulted in an acquisition multiple EV/LTM EBITDA multiple of 12.5x, how much of a premium (in percent) is Woodman’s paying per share of Aldi? Enter answer to one decimal place. So if you think answer is 12.24% then type “12.2”