QXO and Beacon engage in talks
Early Monday, Beacon and QXO released the following joint announcement:
"QXO, Inc. (NYSE:QXO) and Beacon Roofing Supply, Inc. (Nasdaq: BECN) confirmed today that they are in discussions about a potential combination in which QXO would acquire Beacon for $124.35 per share in cash, or total consideration of approximately $11 billion.
"QXO is engaging in customary due diligence regarding Beacon’s business, and QXO and Beacon are negotiating a definitive agreement. Beacon is postponing its Investor Day, which had been scheduled for March 13, 2025.
"There can be no assurance that these discussions will result in a transaction."
The announcement is the latest friendly turn to a weeks-long hostile takeover attempt by QXO, led by billionaire entrepreneur Brad Jacobs. Over the course of his career, Jacobs has completed approximately 500 acquisitions, raised over $40 billion in institutional capital, and created organizations that have emphasized technology as a competitive advantage.
The $124.35 per share figure in the announcement is 10 cents above QXO's original offer made back in November. It's not a done deal, but if it were, then it would be described as an $11 billion deal.
"If we come to an agreement with Beacon, we expect it to be the first of many acquisitions for QXO," said Joe Checkler, a spokesman for QXO. "It will put us on a pathway to our stated goal of $50 billion in revenue."
Beacon, based in Herndon, Virginia, operates more than 580 branches in all 50 states in the U.S and 7 provinces in Canada. QXO sees it as an ideal target, as it is the second largest distributor of roofing products in the U.S. In 2024, Beacon's full-year sales were $9.76 billion, up 7.1 percent from the prior year.
QXO's Jacobs has made clear his interest in building products distribution, viewed as an $800 billion market that's both fragmented and technologically challenged. For its part, Beacon operates a proprietary digital account management suite called Beacon PRO+, which allows customers to manage their business online. Beacon also recently announced an investment and partnership with Renovate Robotics to help bring cutting-edge automation to the job site.
QXO is confident that it can bring in even more technology to help building-products-distribution advance as an industry.
