Investing.com — Beacon Roofing Supply (NASDAQ:BECN) Inc. has begun searching for potential buyers in a bid to counteract an $11 billion takeover offer from QXO Inc, according to a report from Bloomberg. The Virginia-based firm, which specializes in commercial and residential roofing, siding, windows, and other building materials, has been seeking interest from strategic and private equity suitors following QXO’s unsolicited proposal earlier this month.
Despite QXO’s offer of $124.25 per share in cash, Beacon rejected the proposal, stating that it undervalues the company. Beacon’s shares were trading flat at $116.85 on Friday, with a market value of approximately $7.2 billion.
QXO, a building products company led by seasoned dealmaker Brad Jacobs, had previously noted that Beacon was attempting to attract another suitor, but no counteroffer had emerged yet. Beacon had not engaged with other potential bidders as it considered entering talks with QXO, according to sources familiar with the situation, Bloomberg noted.
In a letter to Beacon’s board on January 15, QXO expressed frustration over perceived delays, cancellations, and unreasonable preconditions from Beacon. In response, Beacon affirmed it had given QXO multiple opportunities to engage after receiving the bid in November. The company is set to hold an investor day on March 13, where it plans to outline long-term financial targets and discuss its future growth strategy.
QXO is prepared to nominate directors to Beacon’s board to facilitate a deal but could face competition.
Beacon confirmed in a January 15 press release that it had received and rejected an unsolicited, non-binding proposal from QXO to acquire all outstanding shares of the company for $124.25 per share in cash.
Stuart Randle, Beacon’s Chair of the Board, stated, “After careful review and deliberation, our Board unanimously determined that QXO’s proposal significantly undervalues Beacon and fails to reflect the Company’s growth strategy and upside potential.” He added that the Board remains open to all opportunities to maximize shareholder value and is fully committed to acting in the best interests of Beacon and all of its shareholders.
Beacon’s President and CEO, Julian Francis, expressed enthusiasm about Beacon’s growth prospects and upside potential, and highlighted the company’s successful execution of Ambition 2025.
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