The Greenwich, Connecticut-headquartered building products distributor QXO Inc. (NYSE: QXO) announced its acquisition of Beacon Roofing Supply Inc. (NASDAQ: BECN) for $11 billion.
Founded in 1928, is a leading distributor of roofing, waterproofing and exterior products, with nearly 600 branches across the U.S. and Canada. QXO will pay $124.35 per share in cash for the company in a transaction that the companies expect to conclude in late April.
The acquisition has received antitrust clearance in the US and Canada. In connection with the transaction, QXO has withdrawn its nomination of 10 independent director nominees for election at Beacon’s 2025 annual meeting of shareholders and Beacon has exempted the tender offer from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.
“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,” said Brad Jacobs, chairman and CEO of QXO. “We will be applying our proven playbook to a platform ripe to deliver above-market organic growth and significant margin expansion.”
Stuart Randle, Beacon’s chairman, added, “Since QXO made its initial offer last November, we have evaluated strategic alternatives to enhance value for all of our shareholders. Following our Board’s comprehensive review, we concluded that this transaction is in the best interests of Beacon and its shareholders given the immediate premium and certainty of value in cash it offers, particularly in an uncertain environment.”
