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The second-largest roofing tile distributor, Beacon Roofing Supply, will be acquired by Jacobs’ publicly traded investment vehicle QXO.equipment, including debt, in the United States for $11 billion. In a relatively calm mergers and acquisitions market, the purchase represents one of the biggest corporate takeovers of the year.
Jacobs and Beacon had been at odds for months, with the billionaire financier threatening to launch a campaign to remove Beacon’s board of directors and take his bid straight to shareholders. The deal was finally confirmed on Thursday.
The target rejected Jacobs’ QXO’s January first public offer of $124.25 per share for Beacon, arguing that it was below its projected standalone worth. Beacon only agreed to a price that was 10 cents more than the initial offer on Thursday.Before QXO’s takeover interest was made public, Beacon’s share price was nearly 40% higher than the final price.
More than $6 billion in stock has been obtained by Jacobs from a variety of investors, including Affinity Partners, the private equity firm founded by Donald Trump’s son-in-law Kushner to fund his acquisition of Beacon and other deals.
In a news statement, Jacobs stated, “Acquiring Beacon is a key milestone in our plan to create substantial shareholder value and establish QXO as a leader in the $800 billion building products distribution industry.”
Additionally, QXO has considered acquiring Rexel, a distributor of home electrical supplies listed in Paris with a current market value of around $8 billion. But in September, QXO’s first attempt to acquire was turned down by Rexel’sAdditionally, QXO has considered acquiring Rexel, a distributor of home electrical supplies listed in Paris with a current market value of around $8 billion. But in September, QXO’s first attempt to acquire was turned down by Rexel’sIn an M&A market that has been plagued by consistently high interest rates and uncertainty brought on by Trump’s unpredictable economic plans, the acquisition represents a rare all-cash, blockbuster transaction.
According to QXO, the sale has already received regulatory permission in the US and Canada, and the already amicable agreement may be finalized by the end of April.
According to those briefed on Jacobs’ intentions, if QXO completes the buyout, the business would go back to the market to raise billions more in additional equity financing and utilize Beacon as a platform to do other massive takeovers.