QXO reiterated that its offer has only become more attractive since November, citing a weaker operating environment and capital markets that increase the risk of Beacon’s current strategy. The company also highlighted that its proposal contains no financing contingency, with $5 billion in cash on hand and commitments to cover the balance and refinancing costs.
As part of the strategy, QXO is prepared to nominate directors to Beacon’s board if necessary. The letter also noted that the acquisition, given QXO’s lack of operations in roofing, should not raise significant antitrust or regulatory concerns.
Beacon, based in Herndon, Virginia, claims to be the largest publicly traded distributor of roofing and related products in the U.S. and Canada. The company did not immediately respond to Law360’s request for comment.
Morgan Stanley & Co. LLC is serving as the financial adviser to QXO in the transaction.
