Company: QXO-PB
Filing Date: 2025-02-21
Form Type: DFAN14A
Source: 0000950142-25-000485
Chunk: 1

Company: QXO, Inc.
Filing Date: 2025-02-21
Form: DFAN14A
Chunk 1
---
.” – Brad Jacobs, QXO chairman and chief executive officer QXO's offer What experts are saying Debunking Beacon’s misleading claims Press releases QXO’s offer QXO’s $124.25 per share all-cash offer to acquire Beacon Roofing Supply is highly compelling. The offer represents: A 37% premium to Beacon’s 90-day unaffected VWAP of $91.02 per share as of November 15, 2024; A 3.0x premium to Beacon’s historical next-twelve-months EBITDA multiple;1 and A higher price than Beacon’s stock has ever traded. In addition, since November 15, 2024, Beacon’s peers have lost 8.8% in value,2 making QXO’s offer even more attractive: A 38% premium to an implied spot share price of $90.06;3 and A 50% premium to the peer-adjusted 90-day VWAP of $83.00.3 Despite the strength of this offer, Beacon has repeatedly used delay tactics and adopted a shareholder-unfriendly poison pill. Beacon flatly refused to engage unless QXO signed a standstill agreement—one that would have barred QXO from informing Beacon’s shareholders about the offer. After QXO formally launched its tender offer, Beacon implemented a poison pill to obstruct the proposal. Consensus analyst estimates indicate that Beacon will: Miss its 2025 gross margin target by 127 bps;4 Miss its 2025 EBITDA margin target by 112 bps;4 and Report EBITDA margins 18 bps lower in 2025 than when the Ambition 2025 plan was introduced.4 Beacon insiders recently sold shares at prices far below QXO’s offer. Since early 2024: Chairman Stuart Randle sold 21% of his shares at $94.80;5 CEO Julian Francis sold 10% of his shares at $97.91;6 and CD&R, one of the most sophisticated financial sponsors in the distribution space, exited its position in Beacon at $83.16 per share. Beacon announced it will host an investor day on March 13, shortly after QXO revealed its intention to engage directly with shareholders. Beacon’s newly constructed projections won’t be revealed until more than three months after its Board first rejected QXO’s offer. The projections were undoubtedly designed to justify a higher price, and we suspect they are based on unrealistic assumptions. If Beacon has strong,