Company: QXO-PB
Filing Date: 2025-04-16
Form Type: 424B5
Source: 0001140361-25-014221
Chunk: 7

Company: QXO, Inc.
Filing Date: 2025-04-16
Form: 424B5
Chunk 7
---
20, 2025 we entered into the Merger Agreement to acquire Beacon for $124.35 per share in cash for a total transaction value of approximately $11 billion, including all its outstanding debt. Beacon is the leading publicly-traded specialty wholesale distributor of roofing and complementary building products, including waterproofing products, in North America. Beacon has served the building industry for over 95 years and, as of December 31, 2024, operated 586 branches throughout all 50 states in the U.S. and seven provinces in Canada. Beacon offers an extensive range of high-quality professional grade exterior products and serves approximately 110,000 residential and non-residential customers. Using its fleet of over 2,400 trucks, Beacon makes approximately 1.4 million annual customer deliveries. Beacon is diversified both in its sales mix, consisting of approximately 50% residential roofing, 30% commercial roofing and 20% complementary products, and in its end markets mix, consisting of approximately 80% non-discretionary repair and remodel (“R&R”) spend and 20% new construction.

Beacon’s scale and leading position in the roofing and complementary Building Products Distribution market makes it the ideal initial acquisition for QXO’s value creation playbook. Roofing is a highly attractive vertical, as the vast majority of the revenues are derived from non-discretionary R&R activities, reducing exposure to economic cycles. In addition, Beacon’s supplier and customer base is predominantly U.S.-based, reducing the impact of tariffs and other geopolitical uncertainties. We intend to enhance organizational design, optimize the supply chain and drive commercial excellence, deploying technology across these initiatives. Our strategy is aimed at increasing customer satisfaction, growing revenue in excess of the industry rate, significantly expanding operating margin with a goal over time of doubling the EBITDA at Beacon, as well as to pursuing additional transformational M&A.

#### Our Industry

#### Building Products Distribution
Building Products Distribution is a large industry, with approximately $800 billion in annual revenue in 2024, split roughly equally between North America and Western Europe. The industry is characterized by a mix of national, multi-regional and local distributors, with a fragmented customer base. Building Products Distribution benefits from powerful growth tailwinds. In the United States, we believe the supply of homes is approximately four million units short of demand. There are also strong tailwinds for residential R&R activity. The average age of an existing single-family home in the United States is over 40 years, which creates ongoing demand for repairs.