Tech Service Provider QXO Launches $11B Cash Bid For Beacon Roofing

Technology services provider for manufacturing, QXO, Inc. QXO revealed its intention to make an all-cash tender offer for Beacon Roofing Supply, Inc. BECN, offering $124.25 per share.

The deal’s total value is estimated at around $11 billion, as per the company’s statement.

This proposal represents a 37% premium over Beacon’s 90-day volume-weighted average share price of $91.02, as of November 15, 2024.

QXO plans to finalize the acquisition promptly after the 20-business-day tender offer period ends. The company has assured that the deal is not contingent on financing or due diligence.

“Our compelling offer would get cash into the hands of Beacon shareholders immediately at a significant premium to the unaffected share price,” said chairman and CEO Brad Jacobs.

We believe that Beacon would be a strong fit for QXO and a key part of our plan to become a forward-looking leader in building products distribution.”

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QXO anticipates that the necessary regulatory waiting periods, including those under the Hart-Scott-Rodino Act and Canadian Competition Act, will either expire or be waived by the time the tender offer concludes.

The company has obtained financial backing from prominent financial institutions such as Goldman Sachs Group Inc GS, Morgan Stanley MS, Citigroup Inc C and others.

These funds, along with QXO’s available cash reserves, will cover the entire acquisition cost, including any refinancing of Beacon's debt and related transaction fees.

QXO held $5.03 billion in cash and equivalents as of September 30, 2024.

The tender offer is scheduled to expire at 12:00 midnight ET time on February 24, 2025, though it may be extended.

Price Action: QXO shares are trading higher by 0.22% at $13.76 in premarket at the last check Monday.

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