QXO Secures $830 Million in Effort to Button Up Beacon Acquisition

QXO has now raised nearly $6 billion in cash to acquire Herndon, Va.-based Beacon

QXO Secures additional $830 Million in most recent private placement. — Late Monday, QXO, Inc. announced it secured agreements with institutional investors to raise an additional $830 million via a private placement of around 67.5 million shares priced at $12.30 each. The company’s cash reserves are estimated to be nearly $6 billion.
— Bryan Gottlieb/Roofing Contractor | Elements: Adobe Stock

Updated at 6:39 p.m.

QXO, Inc. announced late Monday that it entered into agreements with institutional investors to raise an additional $830 million through a private placement of approximately 67.5 million shares at $12.30 per share.

QXO trades on the New York Stock Exchange.

According to a QXO news release, the financing is contingent upon successfully completing the company’s tender offer to acquire all outstanding shares of Beacon. With this latest private placement, QXO will potentially have at least $6 billion on hand.

The total includes $3.5 billion initially raised in June 2024, $620 million from a private placement round in July, and approximately $1 billion in seed funding used by CEO and founder Brad Jacobs to create QXO.

The proposed acquisition, valued at approximately $11 billion, offers Beacon shareholders $124.35 per share in cash. This represents a 37% premium over Beacon's 90-day unaffected volume-weighted average price of $91.02.

According to an early Monday news release, QXO's all-cash tender offer, which was scheduled to expire at 5 p.m. EDT on March 14, will remain open until 5 p.m. EDT on March 18, 2025.

Beacon, which trades on the Nasdaq Stock Exchange (BECN), closed up $1.56 on Monday at $119.90 in heavy trading over more than one million shares exchanging hands.

In after-hours trading, the stock is up another $2.50 per share or an additional 2%, at $122.40

The deal, which has unfolded over the last several months, underscores QXO's strategy to consolidate the building-products distribution sector, leveraging advanced technologies, including artificial intelligence, to enhance operational efficiency.

Established in 1928, Beacon operates through 580 branches across the U.S. and Canada and is considered one of the roofing and exterior building industry’s “Big 3” distributors and suppliers, alongside ABC Supply Co. and SRS Distribution.

Beacon’s stock has increased nearly 40% over the past year, reflecting market optimism about its growth prospects.

Jacobs has a track record of building multibillion-dollar companies through acquisitions. His vision for QXO includes integrating advanced technologies to modernize the building-products distribution industry, which is valued at approximately $800 billion.

The private placement and the proposed acquisition are subject to customary closing conditions, including regulatory approvals. There is no assurance that these discussions will result in a finalized transaction.

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Bryan Gottlieb is the online editor at Engineering News-Record (ENR).

Gottlieb is a five-time Society of Professional Journalists Excellence in Journalism award winner with more than a decade of experience covering business, construction, and community issues. He has worked at Adweek, managed a community newsroom in Santa Monica, Calif., and reported on finance, law, and real estate for the San Diego Daily Transcript. He later served as editor-in-chief of the Detroit Metro Times and was managing editor at Roofing Contractor, where he helped shape national industry coverage.

Gottlieb covers breaking news, large-scale infrastructure projects, new products and business.