It was a slow-moving creep until velocity picked exponentially, and early Thursday morning, it became official: QXO completed its acquisition of Beacon in an all-cash transaction valued at approximately $11 billion.

The deal, announced this morning, calls for Beacon shareholders to receive about $124.35 per share, with the transaction expected to close by the end of April.

“We expect Beacon to be the first of many acquisitions, putting us on track toward our intended goal of $50 billion in revenue,” QXO spokesman Joe Checkler said in an email shortly after the news broke.

“Beacon is a great company in a large and growing industry, and we’re confident that the same playbook we used in waste management, equipment rental and transportation is completely applicable to Beacon’s business,” Checkler added. 

The QXO spokesman cited QXO founder Brad Jacobs’ success with a previous start-up, XPO, as an example of the self-made billionaire entrepreneur's success in creating wealth for shareholders.

“[A]fter acquiring two very large companies in 2015, Norbert Dentressangle and Con-way, we integrated both simultaneously into a cohesive, global organization and doubled each of their profits between 2015 and 2018,” he continued. “We see similar opportunities with Beacon."

Beacon Roofing Supply, founded in 1928, is a stalwart in the building materials sector, operating 580 branches across the United States and Canada, distributing roofing materials, siding, windows, and waterproofing systems. 

In a news release announcing the deal, Stuart Randle, Beacon’s chairman, said, “Since QXO made its initial offer last November, we have evaluated strategic alternatives to enhance value for all of our shareholders. 

“Following our Board’s comprehensive review, we concluded that this transaction is in the best interests of Beacon and its shareholders given the immediate premium and certainty of value in cash it offers, particularly in an uncertain environment.”

QXO, an aspirant entrant with ambitions to consolidate the fragmented building products distribution industry — a market estimated at nearly $800 billion — aggressively pursued Beacon as a key strategic acquisition since late last year. 

As Roofing Contractor has previously reported, QXO’s hostile takeover tactics, which included extending tender offer deadlines and directly approaching Beacon shareholders, eventually tipped the scales. The latest extension pushed QXO’s tendered share commitments to over 19% of Beacon’s outstanding stock.

QXO had secured antitrust clearances in the United States and Canada before moving forward with the acquisition. 

The financing for the deal is fully committed, with QXO holding at least $5 billion in cash and major banks, including Goldman Sachs, Morgan Stanley, Citi, Crédit Agricole, Wells Fargo, and Mizuho, providing backing. 

The robust financial support likely allowed QXO to proceed after Beacon’s management repeatedly rejected earlier offers.

Beacon’s board had long opposed QXO’s initial bid, arguing that the offer did not reflect the company’s intrinsic value or growth prospects. 

In response, Beacon implemented a poison pill strategy — a limited-duration stockholder rights plan designed to prevent any party from gaining control without offering a fair premium. The poison pill was activated by issuing preferred share purchase rights to all current shareholders as of Feb. 7, a move intended to safeguard the company’s long-term interests.

MarketWatch noted that Beacon turned down previous proposals despite its stock experiencing significant gains over the past year, increasing nearly 40% due to heightened investor interest. 

This momentum and record sales figures reported for the fourth quarter and full year of 2024 made Beacon an appealing target, even as its board insisted that the current valuation warranted a higher offer.

“Since the launch of Ambition 2025 three years ago, we successfully transformed Beacon, delivering superior financial and operational results,” Julian Francis, president and chief executive officer of Beacon, said. 

“We have a highly differentiated business with multiple paths to success, margin expansion and value creation, and thanks to the incredible talent and dedication of our employees, I know Beacon has a bright future ahead,” Francis added.

5 Takeaways

• Acquisition Value: QXO completed its acquisition of Beacon in an all-cash transaction valued at approximately $11 billion.  
• Strategic Expansion: QXO plans to leverage AI-driven technologies to enhance pricing, demand forecasting, and warehouse automation.  
• Industry Consolidation: The deal strengthens QXO’s goal to consolidate the fragmented $800 billion building products distribution market.  
• Beacon's Legacy: Beacon’s 580-branch network across the U.S. and Canada will complement QXO’s technology-focused strategy.  
• Future Growth: QXO envisions significant operational efficiencies and aims to expand revenue to $50 billion through additional acquisitions.

Both companies have indicated working together to ensure a smooth transition for employees, customers, and other stakeholders. 

Beacon’s long-standing reputation and market presence are expected to merge with QXO’s forward-looking strategy, creating a platform that could reshape the competitive landscape.

“Acquiring Beacon is a key milestone in our plan to create substantial shareholder value and establish QXO as a leader in the $800 billion building products distribution industry,” Jacobs, the QXO chairman and CEO said.

“We will be applying our proven playbook to a platform ripe to deliver above-market organic growth and significant margin expansion,” he added.