Beacon Roofing Supply has officially agreed to the $11 billion QXO buyout ending the months-long takeover saga on the 20th of March 2025. Billionaire Brad Jacob’s QXO is a new entrant in the building products distribution industry. This deal will definitely help the company establish a strong presence in the industry. If you are someone who wants to know more about the $11 billion deal, this article is for you. It brings you everything you need to know about Beacon Roofing agreeing to the $11 billion QXO buyout. The following article also includes statements from the top authorities of both companies.
Beacon Roofing Agrees To $11 Billion QXO Buyout: The Deal
Both companies have finally come to an agreement with QXO promising to pay $124.35 per share in cash to Beacon. This deal was finalized months after the former made an offer that the latter termed as “significantly undervalued.” QXO’s earlier offer was to pay $124.25 per share in January which is only 10 cents less than what the two companies agreed upon today. Beacon has also adopted a poison pill defense in order to protect itself from a hostile takeover.
David Kushner, the son-in-law of the recently elected US President Donald Trump, is a board member of QXO. The company, in connection with the transaction, has officially announced its withdrawal from the nomination of 10 independent director nominees for election at Beacon’s 2025 annual meeting. QXO is funding the transaction with $5 billion in cash and financing commitments that cover the rest of the full purchase price.
What Stuart Randle Said About The Deal?
Stuart Randle, who is the Chairman of Beacon Roofing, explained how the company evaluated strategic alternatives for the enhancement of value for all the shareholders. The board of Beacon Roofing comprehensively reviewed QXO’s offer. He stated that the board came to the conclusion that this transaction with QXO was in the best interest of Beacon and its shareholders. This is true, especially after considering the immediate premium and certainty of value in cash it offers in this uncertain environment.
What Brad Jacobs Said About The Deal?
Billionaire Brad Jacob, who is the chairman and CEO of QXO, mentioned how acquiring Beacon Roofing is a key milestone in their plan to create substantial shareholder value. He also added that this deal will establish QXO as a leader in the building products distribution industry worth $800 billion. Jacob also explained that QXO would apply its proven playbook to a platform ripe in order to deliver above-market organic growth and a significant expansion in the margin. The shares of QXO were up 3%, while on the other hand, Beacon Roofing’s shares witnessed a rise of 1.9%.
QXO Obtained Antitrust Clearance
The company which counts David Kushner, Trump’s son-in-law, as a member of the board, has already obtained antitrust clearance to acquire Beacon. It has got clearance both in the United States of America as well as Canada. QXO also raised a total of $830 million in a private placement from institutional investors earlier this week. This is contingent upon the closing of the deal with Beacon Roofing. The company has said to sell around 67.5 million shares of its common stock at $12.30 per share.
