Company: QXO-PB
Filing Date: 2025-02-21
Form Type: DFAN14A
Source: 0000950142-25-000485
Chunk: 7

Company: QXO, Inc.
Filing Date: 2025-02-21
Form: DFAN14A
Chunk 7
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 organic growth was dramatically higher, averaging ~20% annually, well above ~5% for Beacon.13 There was a similarly sharp disparity in 2018-2023 EBITDA CAGR during this period, ~35% for SRS vs. 12% for Beacon.13 At the outset of this decade, SRS generated an average ROIC of 40%. Beacon’s 2023 ROIC was 14%.13, 14 SRS has meaningful exposure to high-growth adjacencies outside of roofing distribution, in pool and landscaping distribution; the publicly traded industry leaders in each of these categories trade at premium multiples, and have for some time. A notional sum-of-the-parts valuation applying Pool Corp’s and SiteOne’s multiples (inclusive of a customary control premium) reveals that SRS’s core roofing distribution business was effectively acquired at 12x EBITDA—approximately the same multiple implied by our $124.25 offer for Beacon.15 Beacon's fiction: “Each Beacon Board member brings the skills, knowledge, experience and tenure necessary to guide the company’s strategic and operational direction.” Fact: Beacon’s Board has limited operational and managerial experience in building products distribution. Beacon’s current Board seems to be clinging to their seats as evidenced by excessive tenure and limited other public directorships. Among Beacon’s current Board members: 60% have no other public directorships. Beacon’s chairman has remained on the Board for over 18 years. The majority of Beacon’s independent directors have remained on the Board for more than nine years. Among QXO’s slate of nominees: 80% have public board experience. 100% have experience in the industrial sector. 70% have building products distribution sector experience. 90% have M&A experience. 70% have CEO or CFO experience. Beacon's fiction: “QXO’s offer has a high degree of conditionality.” Fact: QXO’s offer has a high degree of certainty: Committed financing in place; Regulatory approvals secured; No due diligence conditions; and Ability to close quickly. Beacon's fiction: “QXO’s nominations are an attempt to pressure the Board into accepting its offer.” Fact: QXO’s slate is an impressive group of accomplished senior executives and directors from some of the best companies in the world—with significant, relevant experience. If elected, QXO’s nominees will provide Beacon’s shareholders with an experienced Board that will independently evaluate QXO’s offer. We have deep respect for Beacon’s shareholders—it is their