QXO, Inc. (QXO) launched a hostile tender offer on January 27, 2025, directly to the shareholders of Beacon Roofing Supply, Inc. (BECN), offering to acquire the company for $11 billion.
Under the terms of the agreement, QXO will commence a tender offer to acquire all outstanding shares of Beacon for $124.25 per share, representing a 4.92% premium from the stock’s last close.
Beacon Roofing Supply is a leading distributor of residential and non-residential roofing materials and complementary building products across North America.
QXO is a technology solutions provider offering consulting, software, and professional services for businesses in the manufacturing, distribution, and service sectors, with a focus on accounting, ERP, CRM, business intelligence, and IT services.
A few weeks ago, QXO publicly revealed a proposal it made to Beacon in November last year to acquire the roofing materials company for $124.25 per share. However, Beacon’s board rejected the offer, deeming it to significantly undervalue the company. Before the news of the offer emerged in November, the stock was trading at $98.75 per share.
QXO, which counts U.S. President Donald Trump’s son-in-law Jared Kushner as a board member, said it intends to pursue all options to complete a transaction, including nominating directors for election at Beacon’s annual meeting.
QXO plans to complete the acquisition promptly after the tender offer expires in 20 business days, on February 24, 2025.
QXO has secured full financing commitments from Goldman Sachs, Morgan Stanley, Citi, Credit Agricole, Wells Fargo, and Mizuho, for the deal.
Morgan Stanley is serving as the lead financial advisor to QXO, while Paul, Weiss, Rifkind, Wharton & Garrison are providing legal counsel. During the talks, J.P. Morgan served as Beacon’s financial advisor, and Sidley Austin, Simpson Thacher, and Bartlett as its legal advisors.
QXO has agreed to a purchase price that represents 12.32 times the EBITDA of Beacon Roofing.
For more comprehensive information regarding this merger and acquisition deal, please refer to the Deal Metrics page here:
Deal Metrics of the acquisition of Beacon Roofing Supply, Inc. (BECN) by QXO, Inc. (QXO)
The Deal Metrics page for each merger or acquisition includes:
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Editor’s Note: Baranjot Kaur contributed to this article