**QXO Inc. Initiates Hostile Takeover Bid for Beacon Roofing Supply Inc.**
QXO Inc. has initiated a hostile takeover attempt for Beacon Roofing Supply Inc. after the building products company’s board dismissed its previous offer as insufficient. The US-based firm announced on Monday that it is proposing a cash offer of $124.25 per share to Beacon’s shareholders, which values the company at approximately $11 billion, including debt.
Brad Jacobs, CEO of QXO, stated, “Our compelling offer would provide cash to Beacon shareholders immediately at a significant premium to the unaffected share price.” On Friday, Beacon’s shares closed at $118.42 in New York, reflecting a 1.6% increase and giving the company a market capitalization of around $7.3 billion.
According to a report from The Wall Street Journal, QXO plans to approach Beacon’s shareholders directly with its bid. In response, Beacon has advised its investors “not to take any action at this time,” indicating that it will provide a formal recommendation regarding QXO’s tender offer within the next 10 business days.
Earlier this month, QXO publicly disclosed its unsolicited bid for Beacon, which was initially presented in November but rejected due to claims that it undervalued the Herndon, Virginia-based company. Reports suggest that Beacon is now seeking potential interest from other strategic and private equity investors.
In a letter dated January 15 to Beacon’s board, QXO accused the company of attempting to hinder the deal through “delays, cancellations, and unreasonable preconditions.” Beacon countered that it had provided QXO with several opportunities to engage following the November bid. The company is set to hold an investor day on March 13, where it will outline its long-term financial goals and future growth strategy.
Beacon Roofing Supply specializes in providing commercial and residential roofing, siding, windows, decking, insulation, specialty lumber, waterproofing, and air-barrier systems to the North American construction industry.
