In a landmark deal, QXO Inc., led by billionaire Brad Jacobs, has successfully acquired Beacon Roofing Supply for $11 billion, marking a significant milestone in the building products distribution sector. This acquisition concludes a protracted takeover saga and positions QXO as a major player in the $800 billion industry.
QXO Inc. (NYSE: QXO) and Beacon Roofing Supply, Inc. (Nasdaq: BECN) have entered into a definitive merger agreement, with QXO acquiring Beacon for $124.35 per share in cash. This offer is a slight increase from the previous bid of $124.25, which Beacon rejected in January, citing undervaluation. The deal underscores QXO’s strategic expansion into the building products distribution market, leveraging Beacon’s extensive network of nearly 600 branches across the U.S. and Canada.
“Acquiring Beacon is a key milestone in our plan to create substantial shareholder value and establish QXO as a leader in the $800 billion building products distribution industry,” stated Brad Jacobs, Chairman and CEO of QXO. This acquisition aligns with QXO’s vision to become a tech-forward leader in the industry, targeting tens of billions of dollars in annual revenue through strategic acquisitions and organic growth.
The acquisition comes amid rising macroeconomic uncertainties, including the impact of U.S. import tariffs, which have heightened concerns about economic stability. Despite these challenges, Beacon’s board concluded that the deal offers immediate premium and certainty of value, making it the best option for shareholders.
QXO has secured $5 billion in cash and financing commitments to cover the purchase price. The company recently raised $830 million through a private placement from institutional investors, contingent on the deal’s completion. QXO plans to issue approximately 67.5 million shares of its common stock at $12.30 per share.
The transaction has received antitrust clearance in both the U.S. and Canada and is expected to close by the end of April, subject to shareholder approval. QXO has withdrawn its nomination of 10 independent director candidates for Beacon’s board in connection with the acquisition.
QXO Inc. is a technology solutions provider specializing in consulting, professional services, and proprietary software development. The company aims to become a leading tech-forward entity in the building products distribution industry.
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