Beacon: QXO Proposes $11 Billion Acquisition
Deal News | Jan 15, 2025 | Globenewswire
QXO, Inc., a technology solutions provider, has publicly proposed to acquire Beacon Roofing Supply for $124.25 per share in cash, valuing the transaction at approximately $11 billion. This proposal represents a 37% premium above Beacon's 90-day volume-weighted average price. Despite the compelling offer, which is supported by financing and legal arrangements, Beacon's Board of Directors has not engaged substantively with QXO. The refusal has led QXO to appeal directly to shareholders, asserting that Beacon's operating environment and capital market context bolster the attractiveness of the offer. Beacon has been accused of anti-shareholder actions and failing to optimize shareholder value, having underperformed in growth relative to peers. QXO remains committed to the acquisition, citing their operational expertise and financial capabilities to facilitate the transaction without regulatory hurdles.
Sectors
- Building Products
- Corporate Finance
- Technology Solutions
Geography
- United States – Both QXO and Beacon Roofing Supply are based in the U.S., with the headquarters of QXO in Greenwich, Connecticut. This transaction largely involves the U.S. market.
Industry
- Building Products – This industry classification is relevant because Beacon Roofing Supply operates in the distribution of building products, primarily roofing materials.
- Corporate Finance – QXO's proposal involves significant financial and strategic advisory activities, including securing committed financing and the involvement of Morgan Stanley as a financial advisor.
- Technology Solutions – QXO provides technology solutions and plans to enhance its presence in the building products distribution through this acquisition, aiming at leveraging technology for growth.
Financials
- $124.25 per share – The proposed acquisition price per share for Beacon Roofing Supply by QXO.
- $11 billion – The total transaction value proposed by QXO for the acquisition of Beacon.
- 37% premium – The premium over Beacon's 90-day unaffected volume-weighted average price offered by QXO.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| QXO, Inc. | Bidding Company | Company | A company providing technology solutions and consultancy, aiming to acquire Beacon to expand its footprint in the building products distribution industry. |
| Beacon Roofing Supply, Inc. | Target Company | Company | A major distributor of roofing materials and building products in North America. |
| Brad Jacobs | Chairman and CEO of QXO | Person | He is leading QXO's efforts to acquire Beacon and has a history of building multi-billion dollar companies. |
| Stuart A. Randle | Chairman of the Board of Beacon | Person | Chairman of the Board at Beacon Roofing Supply, involved in rejecting QXO's acquisition proposal. |
| Morgan Stanley & Co. LLC | Financial Advisor to QXO | Company | Financial advisory firm assisting QXO with the acquisition proposal for Beacon. |
| Paul, Weiss, Rifkind, Wharton & Garrison LLP | Legal Counsel to QXO | Company | Legal firm providing legal assistance and expertise to QXO in the acquisition process. |
| Ihsan Essaid | CFO of QXO | Person | Chief Financial Officer of QXO, involved in the strategic financial planning of the Beacon acquisition. |