QXO, a private company backed by billionaire Brad Jacobs, has agreed to buy Beacon Roofing Supply in an $11 billion deal. The acquisition ends weeks of speculation about the takeover and gives QXO control over Beacon’s extensive network of branches across the US and Canada.
The deal comes as investors seek stability amid growing macroeconomic uncertainty. US President Donald Trump’s import tariffs have increased fears of an economic slowdown, making this offer more attractive to shareholders.
QXO will fund the acquisition with $5 billion in cash and financing commitments. The company has already obtained necessary anti-trust clearance for the deal and plans to close it by April end. This marks a significant milestone in QXO’s plan to establish itself as a leader in the building products distribution industry, valued at over $800 billion.
The acquisition price is $124.35 per share, 10 cents higher than the previous bid of $124.25, which Beacon rejected earlier this month. Despite initial concerns about undervaluation, QXO’s offer has proven more compelling to investors, with shares rising by 3% and Beacon’s shares increasing by 1.9%.
Source: https://www.reuters.com/markets/deals/building-products-distributor-qxo-clinches-beacon-roofing-11-billion-deal-wsj-2025-03-20