After publicly trading barbs for four months, it appears QXO and Beacon Roofing Supply have come to terms.
Citing company executives, the Wall Street Journal reported late Wednesday night that QXO has inked a deal to acquire Beacon for $124.35 per share — representing a 10.8X multiple of Beacon’s consensus full-year 2025 EBITDA, and 10.1X its consensus full-year 2026 EBITDA, according to QXO.
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Those figures are the same as what QXO and Beacon had communicated on March 10 when both sides announced they were working toward a deal at 10 cents per share higher than the $124.25 QXO had voiced as its first and only offer before that date. But what’s new is that QXO is expected to remove its slate of director nominations that it announced Feb. 12, the WSJ reported, adding that the deal is expected to be announced Thursday morning.
“This is an industry where bigger is better,” QXO Founder and CEO Brad Jacobs told the WSJ. “We intend to make QXO very big, as quickly as possible.”
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With $9.76 billion in 2024 revenue, Beacon brands itself as the largest publicly traded distributor of roofing materials and complementary building products in the U.S. and Canada. It was No. 5 on MDM’s 2024 Top Distributors List for Building Materials.
Meanwhile, QXO was launched in mid-2024 by serial entrepreneur Brad Jacobs as a building materials distribution and technology company. Jacobs had previously founded and led seven other companies, including five that are publicly traded: XPO Logistics (and its spinoffs GXO and RXO), United Waste Systems and United Rentals. This past summer, details surfaced about the company’s go-to-market plans, which QXO confirmed to MDM in this Premium piece.
The agreement ends a saga between the two companies that began in earnest in mid-November when a WSJ report shared that QXO had offered to buy Beacon. A standoff ensued over the following months and had become testy — with both sides claiming the other had misrepresented each other’s claims about valuation, before that tone rapidly progressed amicably, with a QXO spokesperson telling MDM on March 10 that the negotiations were “friendly” in nature.
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That spokesperson noted that QXO is confident it can double Beacon’s EBITDA over the next five years, and that QXO plans to scale to more than $50 billion in annual revenue through additional M&A investments.
QXO began listing on the New York Stock Exchange in January, and Beacon would represent its first deal, and a major splash at that. QXO had previously sought to buy France-based electrical supplies distributor Rexel for $9.4 billion, which Rexel rebuffed.
It would also mark the second landmark acquisition in the building materials space over the past year, following The Home Depot’s $18 billion dollar purchase of SRS Distribution this past June.
On March 17, QXO announced that it had raised an additional $830 million in private placement financing that was contingent on “the concurrent consumption” of the company’s offer to buy Beacon, adding to the more than $5 billion in funding QXO had already stated. That news — followed by QXO extending its offer deadline for Beacon multiple times over the past few days — signaled that a deal was imminent.
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