Beacon Roofing Shares Climb After QXO Bid Success
Deal News | Mar 20, 2025 | EIN
Beacon Roofing Supply agreed to a merger after rejecting initial offers from Brad Jacobs' QXO Incorporated, culminating in an $11 billion acquisition. Despite resistance, Beacon managed to increase the offer by $0.10 per share, with the final offer set at $124.35 per share. Despite the tumultuous market and decline in peer stock prices, the deal offers a 50% premium for Beacon's shares. Jacobs, who has raised $6 billion by selling QXO shares to investors like Jared Kushner and the Walton family, expects to double Beacon's operating profit through strategic acquisitions, signaling a series of future deals. While Beacon's management might face job losses, the broader outcome underscores the challenges companies face in resisting lucrative, albeit hostile, takeovers.
Sectors
- Building Materials and Construction
- Private Equity and Investment
Geography
- United States – The main actors in the merger, Beacon Roofing Supply and QXO Incorporated, are based in the United States, with relevant investors and financial backers also located within this geography.
Industry
- Building Materials and Construction – Beacon Roofing Supply operates within the building materials sector, focusing on roofing supplies.
- Private Equity and Investment – QXO Incorporated's acquisition of Beacon Roofing is financed through raised capital and involves strategic investment and mergers, highlighting activities typical of private equity.
Financials
- $11 billion – The total acquisition value agreed upon for Beacon Roofing Supply by QXO Incorporated.
- $124.35 per share – The final agreed-upon offer price per share for Beacon Roofing's shareholders.
- $6 billion – Capital raised by QXO to fund the acquisition, supported by investors such as Jared Kushner and the Walton family.
- $2.5 billion – The premium QXO plans to pay for the acquisition, aiming to cover this with increased operating profits.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Beacon Roofing Supply | Target Company | Company | A prominent player in the supply of building materials, particularly roofing. |
| QXO Incorporated | Bidding Company | Company | A cash shell company led by Brad Jacobs, focusing on acquisitions to expand its portfolio. |
| Brad Jacobs | Bidding Leader | Person | US billionaire driving the acquisition strategy for QXO Incorporated. |
| Jared Kushner | Investor | Person | Investor in QXO Incorporated, contributing to the acquisition financing. |
| Walton family | Investor | People | Part of the investment group financing QXO Incorporated’s acquisition. |