Billionaire investor Brad Jacobs’ firm QXO has agreed to a buyout offer of $11 billion for Beacon Roofing Supply, the company rejected a lower bid just weeks ago. The deal is set to conclude by April and will give QXO control over Beacon’s expansive network of branches across the US and Canada.
QXO plans to pay $124.35 per share in cash, which is only 10 cents higher than its previous offer of $124.25. The company cited “macro uncertainty” as a reason for increasing the bid, referring to US President Donald Trump’s import tariffs that have fueled concerns about an economic slowdown.
Shares of QXO and Beacon rose 3% and 1.9%, respectively, following the announcement. QXO has already secured anti-trust clearance in both the US and Canada to acquire Beacon. The deal is expected to be funded by $5 billion in cash and financing commitments.
QXO had previously raised $830 million from institutional investors to secure the deal. As part of the agreement, QXO will withdraw its nomination for 10 independent directors at Beacon.
Source: https://finance.yahoo.com/news/building-products-distributor-qxo-clinches-015809057.html