QXO Inc Stock Price, News & Analysis

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.'

QXO has released a letter to Beacon Roofing Supply shareholders addressing their $124.25 per share all-cash offer and challenging Beacon's recent communications. The offer represents a 37% premium to Beacon's 90-day unaffected VWAP and a 26% premium to the unaffected spot price as of November 15, 2024.

QXO criticizes Beacon's performance, noting that consensus analysts expect Beacon to miss all margin targets under its 'Ambition 2025' plan. The company's revenue CAGR of 7.7% from 2019 through LTM September 2024 is the lowest among peers. QXO also highlights that Beacon insiders, including the Chairman and CEO, recently sold shares at prices significantly below the offer price, with the Chairman selling 20.9% of shares at $94.80 and the CEO selling 9.8% at $97.91.

The tender offer will remain effective until February 24, 2025, with no financing or due diligence conditions attached.

QXO has responded to Beacon Roofing Supply's rejection of its all-cash offer of $124.25 per share. The tender offer, launched on January 27, 2025, values Beacon at approximately $11 billion, representing a 37% premium to Beacon's 90-day unaffected volume-weighted average price of $91.02 per share as of November 15, 2024.

The offer price exceeds Beacon's historical trading highs. QXO's CEO Brad Jacobs emphasized that their offer provides certainty, premium cash value, and quick closing potential without regulatory delays or financing risks. Beacon has delayed announcing its 2028 financial projections until March 13, which QXO views as an unnecessary delay.

The tender offer remains open until February 24, 2025, with QXO ready to complete the acquisition shortly after expiration, subject to offer terms. The transaction faces no financing or due diligence conditions, with antitrust waiting periods expected to be cleared by the offer's expiration.

Beacon (BECN) announced its Board of Directors unanimously rejected QXO's unsolicited tender offer of $124.25 per share in cash, stating it significantly undervalues the company. The offer price remains unchanged from QXO's November 11, 2024 proposal.

The Board cited several reasons for rejection, including Beacon's strong performance with over 200% total shareholder returns under current management and 11 consecutive quarters of record net sales. Beacon offered to engage with QXO under a buyer-friendly non-disclosure agreement, which QXO declined.

Both J.P. Morgan and Lazard provided formal opinions on February 5, 2025, declaring the offer price inadequate from a financial perspective. Beacon will present its 2028 long-term financial targets and growth plans at its upcoming Investor Day on March 13, 2025.

QXO (NYSE: QXO) has responded to Beacon Roofing Supply's adoption of a shareholder rights plan (poison pill), which aims to block QXO's all-cash tender offer to acquire Beacon's shares. The offer stands at $124.25 per share, representing a 37% premium to Beacon's 90-day unaffected volume-weighted average price of $91.02 and a 26% premium to the $98.75 pre-announcement price.

QXO's chairman and CEO Brad Jacobs emphasized their commitment to completing the transaction promptly, highlighting their committed financing and anticipated smooth regulatory approval process. The tender offer remains open until February 24, 2025, with QXO prepared to complete the acquisition approximately one month after the tender expires. The transaction requires no financing or due diligence conditions.

Beacon (NASDAQ: BECN) has confirmed that QXO, Inc. (NYSE: QXO) has initiated an unsolicited tender offer to acquire all outstanding Beacon shares for $124.25 per share in cash. The offer price remains unchanged from QXO's previous proposal dated November 11, 2024, which was made public on January 15, 2025.

The Beacon Board of Directors, which previously rejected the November proposal unanimously, stating it significantly undervalued the company, will evaluate this new tender offer with its independent financial and legal advisors. The Board will issue its formal recommendation to shareholders within ten business days through an SEC Schedule 14D-9 filing.

J.P. Morgan is acting as financial advisor, while Sidley Austin LLP and Simpson Thacher and Bartlett LLP serve as legal advisors. Shareholders are urged not to take any action at this time.

QXO (NYSE: QXO) has announced an all-cash tender offer to acquire Beacon Roofing Supply (Nasdaq: BECN) for $124.25 per share, representing a 37% premium above Beacon's 90-day unaffected volume-weighted average price of $91.02 per share as of November 15, 2024. The total transaction enterprise value is approximately $11 billion.

The tender offer will expire in 20 business days, and QXO intends to complete the acquisition promptly afterward. The proposed transaction has no contingencies related to financing or due diligence. QXO expects the waiting periods under the Hart-Scott-Rodino Act and the Canadian Competition Act to expire or be waived by the tender offer's expiration.

Beacon (NASDAQ: BECN) has rejected an unsolicited, non-binding proposal from QXO, Inc. to acquire all outstanding shares at $124.25 per share in cash. The proposal, received on November 11, 2024, was unanimously rejected by Beacon's Board as it significantly undervalues the company and its growth prospects.

Despite QXO's claims, Beacon made multiple attempts to engage, offering a standard non-disclosure agreement (NDA) to share confidential management projections. However, QXO refused to engage or improve its initial proposal. Beacon highlighted its strong performance, noting total shareholder returns of over 200% during the past five years under current management.

The company plans to hold an Investor Day on March 13, 2025, where it will present its 2028 long-term targets and discuss its next growth phase. J.P. Morgan is serving as financial advisor, with Sidley Austin LLP and Simpson Thacher and Bartlett LLP as legal advisors.

QXO has announced a proposal to acquire Beacon Roofing Supply for $124.25 per share in cash, representing a total transaction value of approximately $11 billion. The offer represents a 37% premium above Beacon's 90-day unaffected volume-weighted average price of $91.02.

The proposal, initially submitted on November 11, 2024, includes no financing contingency, with QXO having approximately $5 billion in cash and secured financing commitments. The offer represents significant premiums: 26% to Beacon's unaffected price of $98.75, 17% premium to Beacon's unaffected all-time high of $105.84, and a 3.0x premium to Beacon's historical enterprise value to EBITDA multiple.

Despite multiple attempts to engage since July 2024, QXO reports that Beacon's Board has been resistant to substantive discussions, implementing what QXO describes as anti-shareholder actions to prevent the transaction's consideration.