QXO Secures Antitrust Approval for Beacon Roofing Acquisition
Deal News | Feb 12, 2025 | EIN
QXO, Inc., a company known for providing technology solutions, announced that it has received antitrust clearance in both the United States and Canada for its acquisition of Beacon Roofing Supply, Inc. This clearance includes the expiration of the Hart-Scott-Rodino Antitrust Improvements Act waiting period in the U.S. and early termination from the Canadian Competition Bureau. The acquisition is set to proceed without any financing or due diligence conditions. QXO has presented an all-cash tender offer of $124.25 per share for Beacon's outstanding common stock, which is set to remain open until midnight on February 24, 2025. This price represents a premium over Beacon's historical stock value. Morgan Stanley & Co. LLC and Paul, Weiss, Rifkind, Wharton & Garrison LLP are advising QXO on this transaction. The acquisition aligns with QXO's broader strategy of seeking growth through accretive acquisitions in the building products distribution industry. QXO has ambitions to achieve tens of billions in annual revenue over the next decade. Notably, QXO requests that Beacon remove its shareholder-unfriendly poison pill mechanism, which could impede the transaction.
Sectors
- Technology Solutions
- Building Products Distribution
- Mergers & Acquisitions
Geography
- United States – The acquisition involves U.S.-based companies and has received antitrust clearance in the U.S.
- Canada – The acquisition has also secured early termination of regulatory review by the Canadian Competition Bureau.
Industry
- Technology Solutions – QXO provides technology solutions, including consulting, software development, and professional services.
- Building Products Distribution – QXO aims to expand within the $800 billion building products distribution industry through acquisitions like Beacon, a leading distributor in the sector.
- Mergers & Acquisitions – The article revolves around QXO's planned acquisition of Beacon Roofing Supply, highlighting regulatory approval and strategic plans.
Financials
- $124.25 per share – The all-cash offer QXO has made for each share of Beacon's outstanding common stock.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| QXO, Inc. | Bidding Company | Company | QXO provides technology solutions and is seeking to acquire Beacon Roofing Supply. |
| Beacon Roofing Supply, Inc. | Target Company | Company | Beacon is a leading supplier in the building products distribution industry. |
| Brad Jacobs | Chairman and CEO of QXO | Person | Brad Jacobs is leading the acquisition effort on behalf of QXO. |
| Morgan Stanley & Co. LLC | Financial Advisor | Company | Acting as lead financial advisor to QXO for the acquisition. |
| Paul, Weiss, Rifkind, Wharton & Garrison LLP | Legal Advisor | Company | Providing legal counsel to QXO for the transaction. |