Beacon Roofing is quietly exploring other potential buyers following a $11 billion acquisition offer from QXO.
Among the potential suitors is Lowe’s Inc., according to reports. On Jan. 15, QXO Inc. made an offer to acquire Beacon Roofing Supply for $124.25 per share in a cash deal valued at approximately $11 billion. The offer represented a 37% premium over Beacon’s 90-day average share price of $91.02.
QXO is a digital technology company based in Greenwich, Connecticut. The acquisition would align with QXO’s strategy to modernize the $800 billion building products distribution industry through digital commerce.
In response, Beacon Roofing rejected the offer. The company confirmed that it had received and turned down an unsolicited proposal from QXO to acquire all its shares for $124.25 per share of cash.
Potential Beacon Roofing buyers
Now, Beacon is reportedly seeking alternative buyers.
The company is scheduled to hold an investor day on March 13, where it will outline long-term financial goals and its growth strategy moving forward. In the meantime, Beacon Roofing is said to be considering other buyers, including Lowes, according to Reuters.
Analysts from Stifel Financial Corp. noted in a recent report that there’s “real potential for a competing strategic offer” for Beacon Roofing, with Lowe’s seen as a particularly strong candidate. Any such move would follow Home Depot’s $18 billion acquisition of Beacon’s competitor, SRS Distribution, announced last year.
Currently, representatives from Beacon, QXO, and Lowes have yet to comment on the reports.
Sign up
Sign up for a complimentary subscription to Digital Commerce 360 B2B News. It covers technology and business trends in the growing B2B ecommerce industry. Contact Mark Brohan, senior vice president of B2B and Market Research, at mark@digitalcommerce360.com. Follow him on Twitter @markbrohan. Follow us on LinkedIn, X (formerly Twitter), Facebook and YouTube.
FavoriteThe post Beacon Roofing explores alternative buyers appeared first on Digital Commerce 360.
from Digital Commerce 360 https://ift.tt/8GSyeat
0 Comments