QXO Inc Stock Price, News & Analysis

QXO Inc (NYSE: QXO) and Beacon Roofing Supply (Nasdaq: BECN) have confirmed ongoing discussions regarding a potential acquisition deal. The proposed transaction would involve QXO acquiring Beacon for $124.35 per share in cash, representing a total consideration of approximately $11 billion.

QXO is currently conducting standard due diligence on Beacon's business operations, and both companies are in negotiations for a definitive agreement. As a result of these discussions, Beacon has postponed its previously scheduled Investor Day event from March 13, 2025. However, both companies emphasize that there is no guarantee these discussions will lead to a final transaction.

Beacon (BECN) has responded to QXO's second extension of its unsolicited tender offer of $124.25 per share in cash. The Board of Directors unanimously recommends shareholders NOT tender their shares, stating the offer undervalues the company and its growth prospects.

Only 19.12% of shareholders tendered their shares, showing interest in QXO's proposal. Beacon has attempted to engage with QXO to demonstrate additional value, offering both standard and buyer-friendly terms, but QXO declined to receive confidential information.

The company reports achieving record fourth quarter and full year sales, along with its highest fourth quarter Adjusted EBITDA in history, despite challenging economic conditions in 2024. Beacon clarifies it only provided guidance for FY '25, contrary to QXO's assertions about Q1 '25 guidance.

QXO (NYSE: QXO) has reported its Q4 2024 financial results, posting a quarterly loss of $(0.02) per share and a full-year 2024 loss of $(0.11) per share. Total revenue remained flat at $14.7 million compared to Q4 2023. Software product revenue increased to $5.0 million from $4.6 million, while service revenue declined to $9.8 million from $10.1 million year-over-year.

The company reported net income of $11.3 million, including $61.4 million in interest income. Adjusted EBITDA showed a loss of $(7.7) million, down from a gain of $0.7 million in Q4 2023, attributed to costs from introducing new senior management. QXO maintains a strong balance sheet with $5.1 billion in cash and no debt, positioning itself for M&A opportunities in the $800 billion building products distribution industry.

QXO (NYSE: QXO) has extended its all-cash tender offer to acquire Beacon Roofing Supply (Nasdaq: BECN) until March 10, 2025. The offer stands at $124.25 per share, significantly higher than recent insider sales by Beacon's chairman (21% at $94.80) and CEO (10% at $97.91).

The tender offer has already secured approximately 11,810,616 shares (19.18%) of outstanding shares, despite Beacon's Board implementing a poison pill to obstruct the completion. QXO has obtained antitrust clearance in both the U.S. and Canada, with no financing or due diligence conditions pending.

QXO highlights Beacon's weak performance, including missed Q4 2024 expectations for revenue, organic growth, and EBITDA, with Q1 2025 EBITDA guidance 40% below consensus. The acquisition is fully financed through commitments from Goldman Sachs, Morgan Stanley, Citi, Crédit Agricole, Wells Fargo, and Mizuho, combined with QXO's cash reserves.

Beacon (Nasdaq: BECN) has issued a statement responding to QXO, Inc.'s extension of its unsolicited tender offer to acquire all outstanding Beacon shares for $124.25 per share in cash. The company revealed that approximately 10,685,631 shares (about 17.27% of all outstanding shares) have been tendered into the offer.

Beacon's Board of Directors has unanimously rejected QXO's offer, stating it significantly undervalues the company and its growth prospects. The Board emphasized Beacon's strong performance, noting it has generated total shareholder returns exceeding 200% over the past five years under current management.

The Board believes the low tender rate of 17.27% confirms that the majority of shareholders agree the offer price is inadequate. Beacon is encouraging shareholders not to tender their shares and advising those who have already tendered to withdraw them.

QXO (NYSE: QXO) announced an extension of its all-cash tender offer to acquire all outstanding shares of Beacon Roofing Supply (Nasdaq: BECN) at $124.25 per share. Originally set to expire on February 24, 2025, the offer will now remain open until 5:00 p.m. on March 3, 2025. QXO is ready to complete the acquisition shortly after the new expiration date, with no financing or due diligence conditions remaining, and has already obtained antitrust clearance in the U.S. and Canada.

QXO's chairman and CEO, Brad Jacobs, emphasized that this offer represents a substantial cash premium for Beacon shareholders, urging them to support the offer if Beacon's Board removes its anti-shareholder poison pill. As of February 24, 2025, approximately 10,685,631 shares, or 17.27% of Beacon's outstanding shares, have been validly tendered.

QXO has secured full financing commitments from Goldman Sachs, Morgan Stanley, Citi, Crédit Agricole, Wells Fargo, and Mizuho, covering the purchase price, any required refinancing of Beacon’s debt, and associated transaction costs. Morgan Stanley & Co. is serving as QXO's lead financial advisor, and Paul, Weiss, Rifkind, Wharton & Garrison LLP is providing legal counsel.

Beacon (NASDAQ: BECN) announced that QXO has nominated ten individuals for election to Beacon's Board at the 2025 Annual Meeting. This move follows Beacon's Board's unanimous rejection of QXO's unsolicited tender offer of $124.25 per share, which remained unchanged from its November 2024 proposal.

Beacon's current Board, comprising ten directors (nine independent), has overseen the company's successful execution of its Ambition 2025 plan, delivering over 200% total shareholder returns in the past five years and achieving 11 consecutive quarters of record net sales. The Board views QXO's nominations as an attempt to pressure acceptance of an offer price that they believe significantly undervalues Beacon's growth prospects.

The company plans to share its future growth plans and 2028 long-term financial targets at its upcoming Investor Day on March 13, 2025. The Board will evaluate QXO's nominations and present recommendations in the company's proxy statement before the 2025 Annual Meeting.

QXO (NYSE: QXO) has announced plans to propose 10 independent director nominees to replace Beacon Roofing Supply's Board of Directors at their 2025 Annual Meeting. This move follows QXO's tender offer launched on January 27, 2025, to purchase all outstanding Beacon shares at $124.25 per share in cash, valuing the company at approximately $11 billion.

The offer represents a 37% premium to Beacon's 90-day unaffected volume-weighted average price as of November 15, 2024. QXO has already received antitrust clearance in both the U.S. and Canada. The tender offer remains open until February 24, 2025. The proposed slate includes experienced executives and directors from leading global companies, selected for their expertise in corporate transformations and building products sector knowledge.

QXO (NYSE: QXO) has secured antitrust clearance in both the U.S. and Canada for its proposed acquisition of Beacon Roofing Supply (Nasdaq: BECN). The company received expiration of the Hart-Scott-Rodino waiting period and early termination from the Canadian Competition Bureau. QXO's all-cash tender offer stands at $124.25 per share, representing a premium above Beacon's historical trading high.

The offer remains open until midnight (NYC time) on February 24, 2025. QXO, with committed financing in place, is ready to complete the acquisition shortly after the tender expiration. The transaction has no financing or due diligence conditions. QXO's CEO Brad Jacobs has called on Beacon to remove its poison pill provision, describing it as 'shareholder-unfriendly.'