QXO on Monday announced its intention to acquire Beacon Roofing Supply (NASDAQ: BECN ) through an all-cash tender offer for all outstanding shares at $124.25 each.
The offer represents a 37% premium over Beacon's unaffected 90-day volume-weighted average share price as of November 15, 2024. The total value of the transaction is estimated at around $11 billion.
Brad Jacobs, QXO's chairman and CEO, said in a press release that the offer would provide immediate cash to Beacon shareholders at a notable premium.
QXO also confirmed its resolve to pursue all necessary steps to finalize the transaction, including proposing candidates for election at Beacon’s Annual Meeting.
The company has secured financing commitments from a consortium of banks, including Goldman Sachs, Morgan Stanley , Citi, Credit Agricole (OTC: CRARY ), Wells Fargo (NYSE: WFC ), and Mizuho (NYSE: MFG ), ensuring the availability of funds to cover the purchase price, potential debt refinancing for Beacon, and transaction-related costs.
Morgan Stanley & Co (NYSE: MS ). LLC is serving as the lead financial advisor to QXO for this transaction, with Paul, Weiss, Rifkind, Wharton & Garrison LLP providing legal counsel.
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