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GREENWICH, Conn. - QXO, Inc. (NYSE: QXO), currently trading at $12.27 and considered undervalued according to InvestingPro analysis, has announced the extension of its tender offer for all outstanding shares of Beacon Roofing Supply, Inc. (NASDAQ: NASDAQ:BECN), proposing an all-cash acquisition at $124.25 per share. The offer, which was due to expire on Monday, will now remain open until 5:00 p.m. on March 3, 2025.
As of Monday evening, approximately 17.27% of Beacon’s issued and outstanding shares had been tendered, exceeding initial expectations despite the company’s implementation of a poison pill strategy. This defense mechanism is typically used to deter hostile takeovers by making the target company less attractive to the potential acquirer. QXO, with a market capitalization of $5.04 billion and a robust current ratio of 258.64, appears well-positioned to pursue this acquisition despite experiencing significant stock volatility, with shares down nearly 89% over the past year.
QXO’s chairman and CEO, Brad Jacobs, commented on the offer, emphasizing that it represents a significant cash premium for Beacon shareholders. He expressed confidence in the offer’s success, contingent upon the removal of Beacon’s poison pill.
The transaction is poised to proceed swiftly following the tender offer’s closure, with no financing or due diligence conditions pending. QXO has already secured antitrust clearance in the U.S. and Canada, and financial commitments from several prominent banks, including Goldman Sachs and Morgan Stanley (NYSE:MS), ensure the necessary funds are in place to cover the purchase price and associated costs. InvestingPro data reveals QXO maintains more cash than debt on its balance sheet, strengthening its position for this strategic move.
Investors and shareholders can find detailed terms and conditions in the offering documents filed with the Securities and Exchange Commission. These documents are accessible on both the SEC’s website and QXO’s dedicated offer page.
QXO, a provider of technology solutions to various sectors, aims to leverage this acquisition to become a leader in the building products distribution industry, targeting significant revenue growth through strategic acquisitions and organic expansion. Get access to over 10 additional exclusive InvestingPro insights and detailed financial metrics to better understand QXO’s growth potential and market position.
This press release contains forward-looking statements, which are based on current plans and expectations, and are subject to various risks and uncertainties that could cause actual outcomes to differ materially from those discussed.
The information presented in this article is based on a press release statement from QXO, Inc.
In other recent news, QXO, Inc. has launched a tender offer to acquire Beacon Roofing Supply, Inc. for $124.25 per share in cash, valuing the transaction at approximately $11 billion. This offer represents a 37% premium over Beacon’s unaffected 90-day volume-weighted average share price as of November 15, 2024. Despite the premium, Beacon’s Board of Directors has rejected the proposal, citing that it undervalues the company and its growth prospects. QXO’s chairman and CEO, Brad Jacobs, emphasized the strategic fit of Beacon within QXO’s vision for growth in the building products distribution industry.
The tender offer is set to expire on February 24, 2025, and is not contingent on financing or due diligence conditions. QXO has secured financing commitments from major banks to cover the purchase price and related costs. Beacon, meanwhile, plans to reveal its long-term financial targets for 2028 during an Investor Day on March 13, 2025. J.P. Morgan is advising Beacon, while Morgan Stanley is advising QXO in this transaction. Both companies have filed relevant documents with the Securities and Exchange Commission.
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