Virginia Fortune 500 company agrees to $11B buyout

Herndon-based Fortune 500 company Beacon Roofing Supply has agreed to an $11 billion buyout by Connecticut software and professional services company QXO after previously rebuffing a slightly lower offer from the same suitor.

The two businesses have entered into a definitive merger agreement with QXO purchasing the building supply company for $124.35 per share in cash, according to a news release distributed Thursday. In January, Beacon scoffed at a previous offer from QXO that was 10 cents lower per share, stating the company founded by billionaire and serial entrepreneur Brad Jacobs in late 2023 had “significantly undervalued” the roofing and other building supplies distributor.

“Since QXO made its initial offer last November, we have evaluated strategic alternatives to enhance value for all of our shareholders,” Stuart Randle, Beacon’s chair, stated in a news release. “ Following our board’s comprehensive review, we concluded that this transaction is in the best interests of Beacon and its shareholders given the immediate premium and certainty of value in cash it offers, particularly in an uncertain environment.”

When launching QXO in 2023, Jacobs announced his intent for the company to become a leader in the building products distribution industry through mergers and acquisitions and organic growth.

“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,” Jacobs, chair and CEO of QXO, said in a statement. “We will be applying our proven playbook to a platform ripe to deliver above-market organic growth and significant margin expansion.

In February, QXO, which counts President Trump’s son-in-law Jared Kushner among its board members, announced it had obtained antitrust clearance in both the United States and Canada for its acquisition of Beacon.

QXO will cover the purchase price of Beacon with financing commitments and $5 billion in cash. The company announced Monday that it had raised $830 million in private placement from institutional investors., contingent upon closing the Beacon acquisition. The company plans to sell approximately 67.5 million shares of its common stock at $12.30 per share, according to a news release.

A spokesperson for Beacon declined to comment beyond the press release Thursday.

Founded in 1928, Beacon ranks No. 429 on the Fortune 500 list. The company has about 8,000 employees and operates more than 580 branches throughout all 50 states and seven provinces in Canada.

In 2024, Beacon reported net sales of $9.76 billion, a 7.1% increase over the prior year. The Herndon company has been on a growth streak of its own, opening new locations in multiple states and racking up a list of acquisitions, including an announcement earlier this month of the purchase of DM Figley Co., a California wholesale distributor of sealants, waterproofing and concrete repair materials.