Beacon Confirms Receipt and Reiterates Rejection of Unsolicited Proposal
Beacon (NASDAQ: BECN) has rejected an unsolicited, non-binding proposal from QXO, Inc. to acquire all outstanding shares at $124.25 per share in cash. The proposal, received on November 11, 2024, was unanimously rejected by Beacon's Board as it significantly undervalues the company and its growth prospects.
Despite QXO's claims, Beacon made multiple attempts to engage, offering a standard non-disclosure agreement (NDA) to share confidential management projections. However, QXO refused to engage or improve its initial proposal. Beacon highlighted its strong performance, noting total shareholder returns of over 200% during the past five years under current management.
The company plans to hold an Investor Day on March 13, 2025, where it will present its 2028 long-term targets and discuss its next growth phase. J.P. Morgan is serving as financial advisor, with Sidley Austin LLP and Simpson Thacher and Bartlett LLP as legal advisors.
Beacon (NASDAQ: BECN) ha rifiutato una proposta non vincolante e non richiesta da QXO, Inc. per acquisire tutte le azioni in circolazione a 124,25 dollari per azione in contante. La proposta, ricevuta l'11 novembre 2024, è stata unanimemente respinta dal Consiglio di Amministrazione di Beacon in quanto sottovaluta significativamente l'azienda e le sue prospettive di crescita.
Nonostante le affermazioni di QXO, Beacon ha fatto diversi tentativi di dialogo, offrendo un accordo di non divulgazione standard (NDA) per condividere le proiezioni aziendali riservate. Tuttavia, QXO ha rifiutato di collaborare o di migliorare la sua proposta iniziale. Beacon ha evidenziato le sue solide prestazioni, sottolineando un rendimento totale per gli azionisti superiore al 200% negli ultimi cinque anni sotto l'attuale management.
L'azienda prevede di tenere un Investor Day il 13 marzo 2025, dove presenterà i suoi obiettivi a lungo termine per il 2028 e discuterà la sua prossima fase di crescita. J.P. Morgan funge da consulente finanziario, mentre Sidley Austin LLP e Simpson Thacher e Bartlett LLP sono i consulenti legali.
Beacon (NASDAQ: BECN) ha rechazado una propuesta no solicitada y no vinculante de QXO, Inc. para adquirir todas las acciones en circulación a $124.25 por acción en efectivo. La propuesta, recibida el 11 de noviembre de 2024, fue rechazada unánimemente por la Junta de Beacon ya que subestima significativamente la empresa y sus perspectivas de crecimiento.
A pesar de las afirmaciones de QXO, Beacon hizo múltiples intentos de involucrarse, ofreciendo un acuerdo de confidencialidad estándar (NDA) para compartir proyecciones de gestión confidenciales. Sin embargo, QXO se negó a participar o a mejorar su propuesta inicial. Beacon destacó su sólido rendimiento, señalando un retorno total para los accionistas de más del 200% durante los últimos cinco años bajo la dirección actual.
La empresa planea celebrar un Día del Inversor el 13 de marzo de 2025, donde presentará sus objetivos a largo plazo para 2028 y discutirá su próxima fase de crecimiento. J.P. Morgan actúa como asesor financiero, con Sidley Austin LLP y Simpson Thacher y Bartlett LLP como asesores legales.
Beacon (NASDAQ: BECN)은 QXO, Inc.의 모든 유통 주식을 주당 $124.25에 현금으로 인수하자는 비공식 제안을 거부했습니다. 2024년 11월 11일에 받은 이 제안은 Beacon의 이사회에서 만장일치로 거부되었으며, 이는 회사와 그 성장 전망을 심각하게 저평가하고 있습니다.
사측은 QXO의 주장에도 불구하고 여러 차례의 소통 시도를 하였고, 비밀 관리 예측을 공유하기 위해 표준 비밀유지 계약(NDA)을 제안하였습니다. 그러나 QXO는 참여하거나 초기 제안을 개선하려는 노력을 거부했습니다. 비컨은 현재 경영진 하에 지난 5년간 주주 총 수익률이 200% 이상에 달한 강력한 성과를 강조했습니다.
회사는 2025년 3월 13일 투자자 데이를 개최할 예정이며, 여기에서 2028년 장기 목표를 제시하고 다음 성장 단계에 대해 논의할 것입니다. J.P. Morgan이 재정 고문 역할을 하며, Sidley Austin LLP 및 Simpson Thacher와 Bartlett LLP가 법률 고문으로 활동합니다.
Beacon (NASDAQ: BECN) a rejeté une proposition non sollicitée et non contraignante de QXO, Inc. d'acquérir toutes les actions en circulation à 124,25 $ par action en espèces. La proposition, reçue le 11 novembre 2024, a été rejetée à l'unanimité par le Conseil d'Administration de Beacon car elle sous-évalue considérablement l'entreprise et ses perspectives de croissance.
Malgré les affirmations de QXO, Beacon a tenté à plusieurs reprises de dialoguer, en offrant un accord de confidentialité standard (NDA) pour partager des prévisions de gestion confidentielles. Cependant, QXO a refusé de s'engager ou d'améliorer sa proposition initiale. Beacon a souligné sa solide performance, notant un rendement total pour les actionnaires supérieur à 200 % au cours des cinq dernières années sous la direction actuelle.
La société prévoit de tenir un Investor Day le 13 mars 2025, où elle présentera ses objectifs à long terme pour 2028 et discutera de sa prochaine phase de croissance. J.P. Morgan agit en tant que conseiller financier, avec Sidley Austin LLP et Simpson Thacher et Bartlett LLP comme conseillers juridiques.
Beacon (NASDAQ: BECN) hat ein unverbindliches, unaufgefordertes Übernahmeangebot von QXO, Inc. abgelehnt, das alle ausstehenden Aktien zu 124,25 USD pro Aktie in bar erwerben wollte. Das am 11. November 2024 eingegangene Angebot wurde einstimmig vom Vorstand von Beacon abgelehnt, da es das Unternehmen und dessen Wachstumsperspektiven erheblich unterbewertet.
Trotz der Angaben von QXO unternahm Beacon mehrere Versuche zur Kontaktaufnahme und bot eine standardmäßige Geheimhaltungsvereinbarung (NDA) an, um vertrauliche Managementprognosen zu teilen. QXO weigerte sich jedoch, sich zu engagieren oder sein ursprüngliches Angebot zu verbessern. Beacon hob seine starke Leistung hervor und wies darauf hin, dass die Gesamtrendite für die Aktionäre in den letzten fünf Jahren über 200% lag unter der aktuellen Leitung.
Das Unternehmen plant, am 13. März 2025 einen Investorentag abzuhalten, an dem seine langfristigen Ziele für 2028 vorgestellt und die nächste Wachstumsphase erörtert wird. J.P. Morgan fungiert als Finanzberater, während Sidley Austin LLP und Simpson Thacher und Bartlett LLP als juristische Berater tätig sind.
- Total shareholder returns exceeded 200% in the past five years
- Company demonstrates strong growth trajectory and market performance
- Management maintains strategic flexibility by rejecting undervalued offer
- Potential acquisition opportunity rejected without shareholder input
- Lack of transparency in rejecting $124.25 per share offer without counter-proposal
Insights
The rejection of QXO's
The Board's stance and repeated attempts to engage with QXO under standard NDAs suggest they believe the intrinsic value is substantially higher. QXO's refusal to sign an NDA and review confidential information, even with accommodative terms through the March Investor Day, indicates potential tactical maneuvering rather than genuine price discovery. This could be setting up for a hostile takeover attempt, particularly with the upcoming 2025 annual shareholder meeting.
The timing of QXO's public disclosure of their November 2024 offer appears strategically calculated to pressure the Board before the March 13 Investor Day, where long-term targets through 2028 will be revealed. This suggests QXO is attempting to preempt what could be compelling growth projections that would justify a higher valuation.
Beacon's management demonstrates strong conviction in their organic growth strategy and operational execution capabilities. The emphasis on "Ambition 2025" and forthcoming 2028 targets suggests a well-defined roadmap for value creation. Key strategic elements include above-market growth rates, operational excellence initiatives and cultural transformation.
The retention of J.P. Morgan as financial advisor and two prestigious law firms indicates the Board is preparing for multiple scenarios, including potential hostile actions by QXO. The dual legal counsel structure (Sidley Austin and Simpson Thacher) is particularly noteworthy, suggesting preparation for both M&A defense and securities law aspects of a potential proxy fight.
The Board's openness to "all opportunities to maximize shareholder value" while rejecting this specific offer indicates they're maintaining strategic flexibility while setting a high bar for potential acquirers. This positions them well for either continued independence or negotiation of more favorable terms from QXO or other potential suitors.
The market's reaction to this disclosure will be crucial, as it effectively puts Beacon "in play" as a potential acquisition target. The
Beacon's upcoming Investor Day could be a catalyst for share price appreciation if management presents compelling 2028 targets. The Board's confidence in rejecting
QXO's unwillingness to sign an NDA, even with accommodative terms, raises questions about their commitment to a transaction versus creating market pressure. This dynamic could attract other potential buyers who might be willing to engage more constructively with Beacon's Board, potentially leading to a competitive bidding situation.
Proposal Significantly Undervalues the Company and is Not in the Best Interests of Beacon and its Shareholders
On Multiple Occasions Beacon Sought Substantive Engagement with QXO to Demonstrate Path to Value; QXO Refused
Beacon to Hold Investor Day on March 13, 2025, Where Company Will Provide 2028 Long-Term Financial Targets
Shareholders Do Not Need to Take Action At This Time
QXO’s proposal, publicized today, was received on November 11, 2024. Consistent with its fiduciary duties, and in consultation with its independent financial and legal advisors, Beacon’s Board of Directors (the “Board”) thoroughly evaluated the proposal. Following its review, the Board unanimously rejected the proposal and determined that it significantly undervalues the Company and its prospects for growth and future value creation. The Board therefore determined that QXO’s proposal was not in the best interests of Beacon and its shareholders.
Contrary to QXO’s assertions, Beacon offered on multiple occasions to engage, including to discuss price, subject only to a standard non-disclosure agreement (NDA). Additionally, Beacon:
- Held repeated discussions between members of the Beacon executive team and QXO, as well as with the respective advisors of the parties.
- Offered a standard NDA to share confidential management projections and other relevant company information to further develop QXO’s valuation of Beacon. QXO refused to engage on multiple occasions, stating that it was not interested in any confidential information.
- Offered to limit the duration of the customary confidentiality obligations as part of the NDA only through Beacon’s planned Investor Day on March 13, at which point 2028 long-term targets will be presented.
- Structured the NDA to preserve QXO’s ability to run a proxy contest at the upcoming 2025 annual meeting of shareholders.
“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,” said Stuart Randle, Beacon’s Chair of the Board. “Beacon has a proven track record of delivering superior results and shareholder value, having generated total shareholder returns under our current management team of more than
Mr. Randle continued, “Importantly, Beacon has acted in good faith to engage with QXO to show them a path to value in a timeframe that would preserve their rights and flexibility. However, QXO has refused to improve its first and only proposal, which the Board determined significantly undervalues the Company. Our 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.”
“We are enthusiastic about Beacon’s growth prospects and upside potential, and through the successful execution of Ambition 2025, Beacon is delivering above-market growth, driving operational excellence and building a winning culture,” said Julian Francis, Beacon’s President and CEO. “These achievements have enabled us to create a differentiated business model with multiple paths to success, margin expansion and value creation. We look forward to discussing at our Investor Day how we will enter our next chapter of growth, including our new long-term goals.”
J.P. Morgan is serving as financial advisor and Sidley Austin LLP and Simpson Thacher and 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. 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, 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 Additional Information
The Company intends to file a proxy statement on Schedule 14A, an accompanying 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 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 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, its directors, certain of its officers, and other employees may be deemed to be “participants” (as defined in Section 14(a) of 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,” “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) and the Company’s Annual Report on Form 10-K filed with the SEC on February 28, 2024 (available here). To the extent the security holdings of directors and executive officers have changed since the amounts described in these filings, such changes are set forth on Initial Statements of Beneficial Ownership on Form 3, Statements of Change in Ownership on Form 4, or Annual Statements of Beneficial Ownership on Form 5 filed with the SEC, which can be found at no charge at the SEC’s website at www.sec.gov. Updated information regarding the identity of potential participants and their direct or indirect interests, by security holdings or otherwise, in the Company will be set forth in the Company’s Proxy Statement on Schedule 14A for the 2025 annual meeting of stockholders and other relevant documents to be filed with the SEC, if and when they become available. These documents will be available free of charge as described above.
1 January 2, 2020 – November 15, 2024 (the last trading day prior to rumors being published)
View source version on businesswire.com: https://www.businesswire.com/news/home/20250115881586/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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