QXO, Inc. (NYSE: QXO) has announced its acquisition of Beacon Roofing Supply, Inc. (NASDAQ: BECN) for $11 billion, valuing Beacon at approximately $124.35 per share in cash. This move is seen as a strategic step to position QXO as a leader in the $800 billion building products distribution industry.
Beacon, a prominent distributor of roofing, waterproofing, and exterior products with nearly 600 branches across the U.S. and Canada, has seen significant transformation and growth in recent years. Since the launch of "Ambition 2025" three years ago, Beacon has delivered superior financial and operational results.
QXO commenced an all-cash tender offer on January 27, 2025, and has extended the offer to expire on March 31, 2025. The company has withdrawn its nomination of 10 independent director nominees for election at Beacon’s 2025 annual meeting of shareholders, and Beacon has exempted the tender offer from its previously adopted shareholder rights plan.
The acquisition has received antitrust clearance in the U.S. and Canada, with QXO securing financing commitments covering the full purchase price, including debt refinancing and transaction costs. Additionally, QXO has entered into purchase agreements with certain institutional investors for an $830 million private placement financing, subject to the completion of the Beacon acquisition.
Morgan Stanley is acting as the lead financial advisor to QXO, with support from Goldman Sachs, Citi, Centerview, Credit Agricole, Wells Fargo, and Mizuho. Paul Weiss is the lead legal counsel to QXO, with Wachtell Lipton providing additional legal advice. J.P. Morgan is serving as financial advisor to Beacon and its board, and Lazard is serving as financial advisor to the Beacon board. Sidley Austin and Simpson Thacher are serving as legal advisors to Beacon.
This acquisition represents a significant move within the industry, and it will be interesting to see how QXO leverages Beacon's strong market presence and multi-path growth strategy to achieve its targeted tens of billions of dollars of annual revenue in the next decade through accretive acquisitions and organic growth. Today the company's shares have moved 1.9% to a price of $123.83. If you want to know more, read the company's complete 8-K report here.
