QXO Launches $11 Billion Bid for Beacon Roofing Supply
Deal News | Jan 27, 2025 | Globenewswire
QXO, Inc. has announced a cash tender offer to acquire all outstanding shares of Beacon Roofing Supply, Inc. at $124.25 per share, totaling approximately $11 billion. This offer represents a 37% premium over Beacon's 90-day unaffected average share price. The transaction is expected to complete after the tender offer expires in 20 business days, with necessary regulatory waiting periods anticipated to be concluded by then. QXO's CEO, Brad Jacobs, emphasized the immediate cash benefit for Beacon shareholders and the strategic fit of Beacon within QXO’s growth plans in building products distribution. Financial backing for the acquisition has been secured from major banks, including Goldman Sachs and Morgan Stanley. Morgan Stanley & Co. LLC serves as lead financial advisor, with Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal counsel for QXO. The tender offer documents are filed with the SEC. QXO also plans to nominate directors for election at Beacon's annual meeting as part of its strategy to complete the acquisition.
Sectors
- Building Products Distribution
- Technology Solutions
Geography
- United States – QXO and Beacon Roofing Supply are both based in the U.S., and the transaction is subject to U.S. regulatory approvals.
- Canada – The transaction is also subject to approval under the Canadian Competition Act.
Industry
- Building Products Distribution – QXO aims to expand its presence in the building products distribution sector through the acquisition of Beacon Roofing Supply.
- Technology Solutions – QXO provides technology solutions and aims to integrate these capabilities into the building products distribution market.
Financials
- 11 billion – The total enterprise value of the transaction to acquire Beacon Roofing Supply.
- 124.25 – The price per share that QXO is offering in cash to acquire Beacon Roofing Supply.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| QXO, Inc. | Bidding Company | Company | A technology solutions provider looking to become a leader in building products distribution. |
| Beacon Roofing Supply, Inc. | Target Company | Company | A company engaged in the distribution of roofing and building products. |
| Brad Jacobs | CEO of QXO | Person | Chairman and CEO of QXO, leading the acquisition strategy for Beacon Roofing. |
| Goldman Sachs, Morgan Stanley, Citi, Credit Agricole, Wells Fargo, Mizuho | Financial Advisor / Financiers | Company | These firms are providing financial backing for QXO's acquisition offer. |
| Morgan Stanley & Co. LLC | Lead Financial Advisor | Company | Acts as the lead financial advisor to QXO for this acquisition. |
| Paul, Weiss, Rifkind, Wharton & Garrison LLP | Legal Counsel | Company | Provides legal advice to QXO for this transaction. |