QXO Inc. has announced a proposal to acquire Beacon Roofing Supply in a cash transaction valued at approximately $11 billion.
The offer of $124.25 per share represents a 37% premium over Beacon Roofing Supply’s 90-day unaffected volume-weighted average price of $91.02 and aligns with QXO’s strategy to modernize the $800 billion building products distribution industry through digital commerce.
QXO is a digital technology company based in Greenwich, Connecticut.
Beacon Roofing Supply is a publicly traded distributor with a market value of about $6.2 billion. It would bring QXO significant experience in digital commerce technology and growth strategies.
QXO acquisition of Beacon Roofing Supply
The acquisition of Beacon Roofing Supply would mark a major step in QXO’s plan to build a $50 billion company over the next decade, primarily through mergers and acquisitions.
QXO was founded by Brad Jacobs, a digital entrepreneur known for launching United Rentals and XPO Logistics. It recently raised $5 billion in cash and secured financing commitments to support its acquisition strategy.
“We’ve raised $5 billion to make acquisitions of building materials distributors,” a QXO spokesperson said.
The company submitted its proposal to Beacon on Nov. 11. It noted that the offer includes no financing contingencies. The bid also offers notable premiums, including 26% above Beacon’s unaffected share price of $98.75 and 17% above its all-time high of $105.84.
Despite multiple outreaches since July 2024, QXO claims Beacon’s board has resisted substantive discussions and taken measures to prevent shareholders from considering the offer.
QXO has bolstered its leadership team to execute its vision, recently appointing former Target Corp. AI executive Ashwin Rao as chief AI officer and hiring Ihsan Essaid, former head of M&A at Barclays, as chief financial officer.
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