QXO extends offer for Beacon Roofing acquisition

GREENWICH, Conn. - QXO, Inc. (NYSE: QXO), a provider of technology solutions, has announced the extension of its tender offer to purchase all outstanding shares of Beacon Roofing Supply, Inc. (Nasdaq: BECN) for $124.25 per share in cash. The offer price represents a premium to Beacon’s current trading price of $121.79, with the stock trading near its 52-week high of $122.22. The offer, previously set to expire on March 18, 2025, will now be open until 5:00 p.m. (New York City time) on March 19, 2025.

Computershare Trust Company, N.A., serving as the depositary and paying agent for the tender offer, reported that as of the initial expiration time, approximately 12.78 million shares had been tendered, equating to roughly 20.76% of Beacon’s issued and outstanding shares. The deal values Beacon, which generates annual revenue of $9.76 billion and maintains a healthy current ratio of 1.97, at approximately $7.5 billion. Shareholders who have already tendered their shares are not required to respond to this extension.

The tender offer’s terms and conditions are detailed in the offering documents filed with the Securities and Exchange Commission (SEC). Shareholders seeking to tender their shares may reach out to Innisfree M&A Incorporated for assistance.

QXO’s strategy involves becoming a leading technology company in the building products distribution industry, with aspirations to achieve tens of billions in annual revenue over the next decade through strategic acquisitions and organic growth.

This press release contains forward-looking statements, which are based on current plans and expectations and are subject to various risks and uncertainties. These include the potential outcome of the tender offer for Beacon Roofing Supply and QXO’s ongoing proxy contest for election of directors to Beacon’s board.

Investors and security holders are urged to read the Tender Offer Statement and the Solicitation/Recommendation Statement filed with the SEC, as they contain important information regarding the tender offer. These documents are available for free on the SEC’s website and from the information agent for the tender offer. For a comprehensive analysis of Beacon’s valuation and financial health (rated GOOD by InvestingPro), including its impressive 39% six-month return, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.

The information in this article is based on a press release statement and does not necessarily reflect the views of the Wall Street Journal or its staff.

In other recent news, QXO, Inc. has extended its tender offer to acquire all outstanding shares of Beacon Roofing Supply, Inc. at $124.25 per share in cash. The deadline for this offer has been moved from March 14, 2025, to March 18, 2025. As part of its acquisition strategy, QXO aims to establish itself as a significant player in the building products distribution industry. Approximately 18.34% of Beacon Roofing’s shares have already been tendered. Additionally, QXO is negotiating a potential $11 billion deal with Beacon Roofing Supply, which has led Beacon to delay its investor day originally planned for March 13.

In other developments, BMO Capital Markets has adjusted its price target for Beacon Roofing Supply from $136.00 to $130.00 while maintaining an Outperform rating. Analyst Ketan Mamtora cited adverse weather and softening housing demand as reasons for the revised target, though he noted the company’s strong balance sheet. Despite the challenges, BMO Capital continues to see value in Beacon Roofing Supply, estimating its intrinsic value in the mid-$130s. These recent developments reflect ongoing strategic maneuvers and market conditions affecting both companies.

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