QXO ramps up its bid for Beacon
QXO, Inc. is going straight to the shareholders of Beacon Roofing Supply with its offer to acquire the building products distributor.
After an earlier $11 billion bid for Beacon was rebuffed by the Beacon board of directors, QXO latest hostile takeover bid was announced Monday morning. The Greenwich, Conn.-based QXO is commencing an all-cash tender offer to acquire all outstanding shares of BECN for $124.25 per share.
Brad Jacobs, chairman and chief executive officer of QXO, said, “Our compelling offer would get cash into the hands of Beacon shareholders immediately at a significant premium to the unaffected share price. We believe that Beacon would be a strong fit for QXO and a key part of our plan to become a forward-looking leader in building products distribution.”
Beacon's response was to urge shareholders against taking any action at this time.
“Beacon notes that QXO’s offer price remains unchanged from its November 11, 2024 proposal to acquire all of the outstanding shares of the Company for $124.25 per share in cash, which was made public on January 15, 2025. The Board thoroughly evaluated the November 11, 2024 proposal and unanimously rejected it, determining that it significantly undervalued the Company and that it was not in the best interests of Beacon and its shareholders,” the company said in a statement.
That analysis of the offer is hotly disputed by QXO, which describes the bid price as at a 37% premium above Beacon’s 90-day unaffected volume-weighted average price of $91.02 per share as of November 15, 2024.
In addition, QXO says that it intends to pursue all options to complete a transaction, including nominating directors for election at Beacon’s Annual Meeting.
The offer and withdrawal rights are scheduled to expire at midnight eastern time at the end of February 24, unless the offer is extended.
QXO, according to its own description, plans to become a tech-forward leader in the $800 billion building products distribution industry. The company is targeting tens of billions of dollars of annual revenue in the next decade through accretive acquisitions and organic growth.
Herndon, Virginia-based Beacon Roofing Supply is a building products distributor that tallied 533 branches in its most recent annual report—515 in the United States and 18 in Canada. The company reported total sales of $9.12 billion in the full year ended Dec. 31, 2023.