Beacon ROOFING seek potential competitors for QXO acquisition offers

(Bloomberg) -Aconsia of people familiar with the matter, Beacon ROOFING Supply Inc. has begun to solicit interest in potential buyers in order to resist its competitors QXO Inc.’s 11 billion US dollars offer offer.

According to people familiar with the matter, after QXO took the initiative to propose the acquisition plan this month, Beacon, headquartered in Herneden, Virginia, is seeking interest in assessment strategy and private equity acquisitioners. Beacon rejected QXO’s $ 124.25 cash per share, saying that it underestimated the company’s value.

QXO has previously stated that Beacon has been seeking to attract another pursuit, but has not yet been checked. People familiar with the matter who required anonymous because of discussing confidential information said that Beacon is considering that negotiations with QXO have not been in contact with other potential bidders.

People familiar with the matter said that the review work is still in the early stages, and it is not sure whether it will lead to any other acquisition offer to Beacon. The representatives of Beacon and QXO refused to comment.

Beacon provides commercial and residential roofs, wall boards, windows, decorations, insulation materials, special wood, waterproof and air barrier systems for commercial and residential roofs, wall boards, windows, decorations, insulation materials. At 1:59 pm on Friday, the company’s stock price was flat at $ 116.85 in New York, with a market value of about $ 7.2 billion.

QXO stated in a letter from the BEACON board on January 15 that the target company has always tried to defeat the transaction through “delay, cancellation and unreasonable prerequisites”. In this regard, Beacon said that after receiving the bidding in November, QXO has provided multiple opportunities for participation. The company plans to hold an investor day on March 13, when it plans to provide long -term financial goals and plan the next stage of growth.

QXO is an architectural product company. It is operated by Senior trading mixer Brad Jacobs and is currently seeking large -scale acquisitions. Last year, it proposed a offer of RMAL SA for 7.6 billion euros ($ 8 billion), but gave up after being rejected by French power suppliers.

Although QXO is ready to nominate directors to the BEACON board to promote transactions, it may still face some competition. Stifel Financial Corp. Analysts wrote in a recent report that they saw Beacon’s “real potential of competitive strategy offer”. They call Lagu as “the most striking candidate.”

Any transaction will follow Lowe’s competitors Home Depot Inc. last year, the company agreed to acquire Beacon’s competitors SRS Distribution Inc.

Morgan Stanley served as QXO’s financial consultant. Morgan Chase is working with Beacon.

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