Billionaire Brad Jacobs’ QXO Acquires Beacon Roofing for $11 Billion

BENGALURU, India — Beacon Roofing Supply has accepted an $11 billion buyout offer from QXO, a firm led by billionaire Brad Jacobs, just weeks after rejecting an earlier proposal and attempting to evade a hostile takeover.

The agreement concludes a months-long saga for Beacon, providing QXO, a newcomer in the building products distribution sector, with a substantial foothold. On March 20, the companies announced that QXO would pay $124.35 per share in cash for Beacon.

This new offer represents a mere 10-cent increase from the rejected bid of $124.25 per share, which Beacon had deemed to “significantly undervalued” the company. Additionally, Beacon had implemented strategies to prevent a hostile takeover attempt.

Jacobs, who serves as chairman and CEO of QXO, emphasized the significance of this acquisition, stating, “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.”

Following the announcement, QXO’s shares surged by 12% during premarket trading, while Beacon’s shares climbed 2%. To finance the acquisition, QXO plans to utilize $5 billion in cash along with additional financing commitments.

Earlier this week, QXO successfully raised $830 million in private placements from institutional investors, contingent on the deal’s completion with Beacon. They announced plans to sell approximately 67.5 million shares of common stock at a price of $12.30 per share.

As part of this transaction, QXO will withdraw its nominations for 10 independent director candidates to the Beacon board, suggesting a shift in corporate governance structure.

Moreover, QXO has reportedly received the necessary regulatory clearances to proceed with the acquisition in both the United States and Canada. The deal is anticipated to close by the end of April 2025, which will mark a significant step for QXO in capturing market share in the competitive building products distribution industry.

For ongoing updates on this developing story, stay tuned.