QXO acquires Beacon Roofing for $11 billion

GREENWICH, Conn. – QXO, Inc. (NYSE: QXO), currently valued at $5.5 billion in market capitalization, has finalized its acquisition of Beacon Roofing Supply, Inc., establishing itself as the largest publicly traded distributor of roofing, waterproofing, and complementary building products in the United States. The transaction, valued at approximately $11 billion, or $124.35 per share, was completed on Monday, with QXO set to ring the Opening Bell at the New York Stock Exchange on Wednesday to celebrate the milestone. According to InvestingPro analysis, QXO’s stock appears slightly undervalued at current levels, with shares showing a notable 10% gain over the past week despite falling 87% over the last year.

The tender offer for Beacon’s outstanding shares concluded on Sunday, with approximately 72.06% of the shares validly tendered. Following the tender offer, QXO completed the acquisition through a second-step merger, with Beacon becoming a wholly owned subsidiary and its shares ceasing to trade on the Nasdaq Global Select Market as of Tuesday.

QXO’s Chairman and CEO, Brad Jacobs, expressed enthusiasm for the acquisition, stating that the integration of Beacon’s team will accelerate growth and customer experience improvements. The company aims to lead the $800 billion building products distribution industry with a tech-enabled approach and has set a target of $50 billion in annual revenues within the next decade through acquisitions and organic growth. InvestingPro data supports the growth narrative, projecting a 44% revenue increase for fiscal year 2025, though analysts expect some near-term profitability challenges. The company maintains a strong financial position with a healthy current ratio of 113x and virtually no debt on its balance sheet.

The acquisition was supported by an $830 million equity private placement that QXO has now closed. Financial advisory for the transaction was provided by Morgan Stanley, Goldman Sachs, Citi, Centerview, Credit Agricole, Wells Fargo, and Mizuho, with legal counsel from Paul, Weiss and Wachtell Lipton.

QXO’s forward-looking statements about the anticipated benefits of the acquisition and future financial performance are inherently uncertain and are cautioned by risks including potential delays in realizing benefits, integration challenges, unexpected costs, and possible regulatory actions. Investors are advised to consider these factors along with QXO’s SEC filings, which detail additional risks and uncertainties. InvestingPro subscribers have access to 10 additional exclusive insights about QXO’s financial health, valuation metrics, and growth prospects to help make more informed investment decisions.

This news report is based on a press release statement from QXO, Inc.

In other recent news, QXO Inc. has made significant strides in its strategic initiatives. The company announced a $4 billion junk-debt sale, led by Morgan Stanley and Goldman Sachs, to facilitate the acquisition of Beacon Roofing Supply Inc. This acquisition is valued at approximately $11 billion and is expected to close the week of April 28, 2025. Additionally, QXO’s subsidiary, Queen MergerCo, plans to offer $2 billion in Senior Secured Notes due 2032 to further support the acquisition. The company is also offering $500 million of its common stock, with an option for underwriters to purchase an additional $75 million, to partially fund the Beacon acquisition.

Furthermore, QXO has appointed Val Liborski as its new chief technology officer, effective April 21, 2025. Liborski brings a wealth of experience from his previous roles at Yahoo, HelloFresh, and Amazon Web Services. QXO’s ambition is to achieve annual revenues of $50 billion over the next decade through strategic acquisitions and organic growth. The acquisition of Beacon positions QXO as the second-largest distributor of roofing products in the United States. These developments highlight QXO’s aggressive growth strategy in the building products distribution industry.

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