Beacon Adopts Stockholder Rights Agreement
Beacon (BECN) has announced that its Board of Directors has unanimously adopted a duration stockholder rights agreement in response to QXO, Inc.'s tender offer. The Rights Agreement is designed to protect stockholders from opportunistic control attempts without appropriate premium payments.
The agreement will issue one preferred share purchase right for each outstanding share of Beacon common stock to stockholders of record as of February 7, 2025. These rights become exercisable if an entity acquires 15% (or 20% for certain Schedule 13G investors) of Beacon's common stock without Board approval. In such cases, rights holders can purchase additional shares at a 50% discount.
The Rights Agreement expires on January 26, 2026, unless extended with stockholder approval. The Board has previously rejected QXO's offer price as significantly undervaluing the company and will issue its formal recommendation within ten business days of the tender offer commencement.
Beacon (BECN) ha annunciato che il suo Consiglio di Amministrazione ha adottato all'unanimità un accordo per i diritti degli azionisti a durata in risposta all'offerta pubblica di acquisto di QXO, Inc. L'Accordo sui Diritti è progettato per proteggere gli azionisti da tentativi opportunistici di controllo senza i pagamenti di premio appropriati.
L'accordo emetterà un diritto di acquisto di azioni privilegiate per ogni azione ordinaria di Beacon in circolazione agli azionisti registrati al 7 febbraio 2025. Questi diritti diventano esercitabili se un'entità acquisisce il 15% (o il 20% per alcuni investitori del Programma 13G) delle azioni ordinarie di Beacon senza l'approvazione del Consiglio. In tali casi, i titolari dei diritti possono acquistare azioni aggiuntive con uno sconto del 50%.
L'Accordo sui Diritti scade il 26 gennaio 2026, salvo proroga con approvazione degli azionisti. Il Consiglio ha in precedenza rigettato il prezzo offerto da QXO, considerandolo significativamente sottovalutato rispetto al valore dell'azienda e emetterà la sua raccomandazione formale entro dieci giorni lavorativi dall'inizio dell'offerta pubblica.
Beacon (BECN) ha anunciado que su Junta Directiva ha adoptado por unanimidad un acuerdo de derechos de los accionistas de duración en respuesta a la oferta pública de adquisición de QXO, Inc. El Acuerdo de Derechos está diseñado para proteger a los accionistas de intentos de control oportunistas sin los pagos de prima apropiados.
El acuerdo emitirá un derecho de compra de acciones preferentes por cada acción ordinaria de Beacon en circulación a los accionistas registrados a partir del 7 de febrero de 2025. Estos derechos se pueden ejercer si una entidad adquiere el 15% (o el 20% para ciertos inversores del programa 13G) de las acciones ordinarias de Beacon sin la aprobación de la Junta. En tales casos, los titulares de derechos pueden comprar acciones adicionales con un descuento del 50%.
El Acuerdo de Derechos expira el 26 de enero de 2026, a menos que se prorrogue con la aprobación de los accionistas. La Junta rechazó previamente el precio de oferta de QXO al considerarlo significativamente subvalorado en comparación con el valor de la empresa y emitirá su recomendación formal dentro de diez días hábiles desde el inicio de la oferta pública.
비콘 (BECN)은 이사회의 만장일치로 QXO, Inc.의 인수 제안에 대한 주주 권리 협정을 채택했다고 발표했습니다. 이 권리 협정은 적절한 프리미엄 지급 없이 기회주의적 지배 시도를 막기 위해 설계되었습니다.
이 협정은 2025년 2월 7일 기준으로 등록된 주주에게 비콘 보통주 1주당 1개의 우선주 매입 권리를 발행합니다. 이러한 권리는 제3자가 비콘의 보통주 15% (또는 특정 13G 계획 투자자의 경우 20%)를 이사회 승인 없이 취득할 경우 행사할 수 있습니다. 이러한 경우 권리 보유자는 50% 할인된 가격으로 추가 주식을 구매할 수 있습니다.
권리 협정은 2026년 1월 26일에 만료되며, 주주 승인으로 연장될 수 있습니다. 이사회는 이전에 QXO의 제안 가격이 회사를 현저히 과소 평가하고 있다고 판단했으며, 인수 제안 시작 후 10 영업일 이내에 공식 권장 사항을 발표할 것입니다.
Beacon (BECN) a annoncé que son Conseil d'Administration a adopté à l'unanimité un accord de droits des actionnaires d'une durée déterminée en réponse à l'offre publique de rachat de QXO, Inc. Cet Accord de Droits est conçu pour protéger les actionnaires contre les tentatives de prise de contrôle opportunistes sans paiements de prime appropriés.
L'accord accordera un droit d'achat d'actions privilégiées pour chaque action ordinaire de Beacon en circulation aux actionnaires enregistrés à partir du 7 février 2025. Ces droits deviennent exerçables si une entité acquiert 15 % (ou 20 % pour certains investisseurs du calendrier 13G) des actions ordinaires de Beacon sans l'approbation du Conseil. Dans de tels cas, les titulaires de droits peuvent acheter des actions supplémentaires à un tarif réduit de 50 %.
L'Accord de Droits expire le 26 janvier 2026, sauf prorogation avec l'approbation des actionnaires. Le Conseil a précédemment rejeté le prix proposé par QXO comme étant significativement sous-évalué par rapport à la valeur de l'entreprise et formulera sa recommandation officielle dans les dix jours ouvrables suivant le début de l'offre publique.
Beacon (BECN) hat bekannt gegeben, dass der Vorstand einstimmig einen zeitlich befristeten Aktionärsrechtevertrag als Reaktion auf das Übernahmeangebot von QXO, Inc. angenommen hat. Der Rechtevertrag soll die Aktionäre vor opportunistischen Control-Versuchen ohne angemessene Prämienzahlungen schützen.
Der Vertrag sieht vor, dass für jede ausstehende Aktie von Beacon eine Bezugsrecht für die Kauf von Vorzugsaktien an die Aktionäre ausgegeben wird, die zum 7. Februar 2025 im Aktienregister stehen. Diese Rechte werden ausübbar, wenn eine Institution 15 % (oder 20 % für bestimmte Investoren gemäß dem Formular 13G) der Stammaktien von Beacon ohne Vorstandszustimmung erwirbt. In solchen Fällen können die Rechteinhaber zusätzliche Aktien mit einem Rabatt von 50 % kaufen.
Der Rechtevertrag läuft am 26. Januar 2026 aus, es sei denn, er wird mit Zustimmung der Aktionäre verlängert. Der Vorstand hat das Angebot von QXO zuvor als deutlich unterbewertet eingestuft und wird innerhalb von zehn Geschäftstagen nach Beginn des Übernahmeangebots eine formale Empfehlung abgeben.
- Board maintains control over potential acquisition offers to ensure fair value for shareholders
- Shareholders receive protective rights allowing discounted stock purchases in case of hostile takeover
- Rights Agreement includes flexibility for Board-approved merger transactions
- Implementation of Rights Agreement indicates defensive position against unwanted takeover attempts
- Board's rejection of QXO's offer might deter potential future bidders
- Rights Agreement could potentially limit shareholders' ability to benefit from certain acquisition offers
Insights
Beacon's implementation of a stockholder rights agreement represents a calculated defensive maneuver that materially impacts the ongoing takeover dynamics with QXO. This 'poison pill' defense mechanism, set to expire on January 26, 2026, creates significant economic barriers to hostile acquisition attempts while maintaining the board's flexibility to negotiate favorable terms.
The rights agreement's specific terms are strategically calibrated: The 15% ownership threshold (20% for certain Schedule 13G filers) is positioned to provide robust protection while avoiding overly restrictive limitations that could face shareholder criticism. The 50% discount purchase right for existing shareholders serves as a powerful deterrent, potentially making any hostile acquisition prohibitively expensive through share dilution.
Several key aspects warrant investor attention:
- The board retains significant optionality through redemption rights at
$0.001 per right and the ability to approve beneficial transactions - The February 7, 2025 record date provides immediate protection while allowing time for shareholder communication
- The grandfathering provision for existing large stakeholders demonstrates a balanced approach to shareholder rights
This defensive measure effectively strengthens Beacon's negotiating position without completely closing the door on potential value-creating transactions. The board's explicit rejection of QXO's previous offer price as undervaluing the company suggests they're positioning for either a higher bid or pursuing alternative strategic options that could deliver superior shareholder value.
The carefully structured rights agreement demonstrates sophisticated legal engineering that balances shareholder protection with board flexibility. Key legal considerations include:
- The board's explicit preservation of its fiduciary duty to consider fair offers through multiple termination provisions
- Differentiated treatment of Schedule 13G filers with higher thresholds, recognizing passive institutional investors
- Clear mechanical provisions for rights exercise and exchange, reducing potential litigation risks
The agreement's design incorporates recent developments in poison pill jurisprudence, particularly regarding duration and trigger thresholds. The one-year term aligns with contemporary governance standards, while the exchange right provision gives the board tactical flexibility in responding to evolving takeover scenarios.
The engagement of prominent legal counsel (Sidley Austin LLP and Simpson Thacher) signals the board's commitment to a robust and legally defensible process. This multi-firm approach typically indicates complex deal dynamics and the need for specialized expertise in both defense strategies and public company M&A.
The Board adopted the Rights Agreement in response to the tender offer previously announced by QXO, Inc. (“QXO”). The Rights Agreement is intended to protect Beacon and its stockholders from anyone seeking to opportunistically gain control of Beacon without paying all stockholders an appropriate control premium. The Rights Agreement ensures the Board has sufficient time to review QXO’s tender offer and consider the best approach to enhance the interests of Beacon and its stockholders. The Rights Agreement will not, and is not intended to, prevent a takeover of the Company on terms that are fair to and in the best interests of the Company and all the Company’s stockholders. As previously disclosed, the Board will thoroughly evaluate QXO’s tender offer and issue its formal recommendation to stockholders within ten business days from the commencement of QXO’s tender offer. However, Beacon notes that QXO’s offer price remains unchanged from its November 11, 2024 proposal, which the Board previously rejected as significantly undervaluing the Company and not being in the best interests of Beacon and its stockholders.
Pursuant to the Rights Agreement, Beacon will issue, by means of a dividend, one preferred share purchase right for each outstanding share of Beacon common stock to stockholders of record as of the close of business on February 7, 2025. Initially, these rights will not be exercisable and will trade with, and be represented by, the shares of Beacon common stock.
The Rights Agreement will expire on the earliest of (i) the close of business on January 26, 2026, unless stockholder approval is obtained prior to such date to extend the term of the rights, (ii) the time at which the rights are redeemed, (iii) the time at which the rights are exchanged and (iv) the closing of a merger or acquisition transaction involving the Company pursuant to a merger or other acquisition agreement approved by the Board, in each case, pursuant to the Rights Agreement.
The terms of the Rights Agreement are consistent with other rights plans adopted by publicly-held companies. Under the Rights Agreement, the rights generally become exercisable if a person or a group of persons (each, an “acquiring person”) acquires beneficial ownership of
If a person or group beneficially owns
Additional information regarding the Rights Agreement will be contained in a current report on Form 8-K to be filed by Beacon with the
J.P. Morgan is serving as financial advisor and Sidley Austin LLP and Simpson Thacher & Bartlett LLP are legal advisors to Beacon.
About Beacon
Founded in 1928, Beacon is a publicly-traded Fortune 500 company that distributes specialty building products, including roofing materials and complementary products, such as siding and waterproofing. The company operates over 580 branches throughout all 50 states in the
Forward Looking Statements
This release contains information that may constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historic or current facts and often use words such as “anticipate,” “estimate,” “expect,” “believe,” “will likely result,” “outlook,” “project” and other words and expressions of similar meaning, and include statements regarding the purpose, adoption and objective of the Rights Agreement. Investors are cautioned not to place undue reliance on forward-looking statements. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including, but not limited to, risks relating to the purpose, adoption and objective of the Rights Agreement, as well as those set forth in the “Risk Factors” section of the Company’s Form 10-K for the fiscal year ended December 31, 2023 and subsequent filings with the
Important Information for Investors and Stockholders
This press release does not constitute an offer to buy or solicitation of an offer to sell any securities. The Company will file a solicitation/recommendation statement on Schedule 14D-9 with the SEC. Any solicitation/recommendation statement filed by the Company that is required to be mailed to stockholders will be mailed to stockholders. THE COMPANY’S INVESTORS AND STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ THE COMPANY’S SOLICITATION/RECOMMENDATION STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ALL OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and stockholders may obtain a copy of the solicitation/recommendation statement on Schedule 14D-9, any amendments or supplements thereto and other documents filed by the Company with the SEC at no charge at the SEC’s website at www.sec.gov. Copies will also be available at no charge by clicking the “SEC Filings” link in the “Financials & Presentations” section of the Company’s website, https://ir.beaconroofingsupply.com/, or by contacting Binit.Sanghvi@becn.com as soon as reasonably practicable after such materials are electronically filed with, or furnished to, the SEC.
Important Additional Information
The Company intends to file a proxy statement on Schedule 14A, an accompanying BLUE proxy card, and other relevant documents with the SEC in connection with such solicitation of proxies from the Company’s stockholders for the Company’s 2025 Annual Meeting of Stockholders. THE COMPANY’S STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ THE COMPANY’S DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO), THE ACCOMPANYING BLUE PROXY CARD, AND ALL OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and stockholders may obtain a copy of the definitive proxy statement, an accompanying BLUE proxy card, any amendments or supplements to the definitive proxy statement and other documents filed by the Company with the SEC at no charge at the SEC’s website at www.sec.gov. Copies will also be available at no charge by clicking the “SEC Filings” link in the “Financials & Presentations” section of the Company’s website, https://ir.beaconroofingsupply.com/.
Participants in the Solicitation
The Company, each of its independent directors (Stuart A. Randle, Barbara G. Fast, Alan Gershenhorn, Melanie M. Hart, Racquel H. Mason, Robert M. McLaughlin, Earl Newsome, Jr., Neil S. Novich, and Douglas L. Young) and certain of its executive officers (Julian Francis, President & Chief Executive Officer and Prithvi Gandhi, Executive Vice President & Chief Financial Officer) are deemed to be “participants” (as defined in Schedule 14A under the Exchange Act of 1934, as amended) in the solicitation of proxies from the Company’s stockholders in connection with matters to be considered at the Company’s 2025 Annual Meeting of Stockholders. Information about the names of the Company’s directors and officers, their respective interests in the Company by security holdings or otherwise, and their respective compensation is set forth in the sections entitled “Information About our Nominees,” “Compensation of Directors,” “Information on Executive Compensation” and “Stock Ownership” of the Company’s Proxy Statement on Schedule 14A in connection with the 2024 Annual Meeting of Stockholders, filed with the SEC on April 3, 2024 (available here), the Company’s Annual Report on Form 10-K filed with the SEC on February 28, 2024 (available here) and the Company’s Current Report on Form 8-K filed with the SEC on April 23, 2024 (available here). Supplemental information regarding the participants’ holdings of the Company’s securities can be found in SEC filings on Statements of Change in Ownership on Form 4 filed with the SEC on May 28, 2024 and May 17, 2024 for Mr. Randle (available here and here); May 17, 2024 for Ms. Fast (available here); May 17, 2024 for Mr. Gershenhorn (available here); May 17, 2024 for Ms. Hart (available here); May 17, 2024 for Ms. Mason (available here); May 17, 2024 for Mr. McLaughlin (available here); May 17, 2024 for Mr. Newsome (available here); May 17, 2024 for Mr. Novich (available here); May 17, 2024 for Mr. Young (available here); May 22, 2024 for Mr. Francis (available here); and August 8, 2024 and May 21, 2024 for Mr. Gandhi (available here and here). Such filings are also available on the Company’s website at https://ir.beaconroofingsupply.com/financials-and-presentations/sec-filings.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250127203434/en/
Beacon Contacts:
Media
Jennifer Lewis
VP, Communications and Corporate Social Responsibility
Jennifer.Lewis@becn.com
571-752-1048
Ed Trissel / Andrea Rose
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449
Investors
Binit Sanghvi
VP, Capital Markets and Treasurer
Binit.Sanghvi@becn.com
972-369-8005
Bruce Goldfarb / Pat McHugh
Okapi Partners LLC
(888) 785-6673
(212) 297-0720
info@okapipartners.com
Source: Beacon
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