Company: QXO-PB
Filing Date: 2025-03-14
Form Type: DFAN14A
Source: 0000950142-25-000746
Chunk: 3

Company: QXO, Inc.
Filing Date: 2025-03-14
Form: DFAN14A
Chunk 3
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Digital Commerce 360

By Mark Brohan

March 10, 2025

| § | QXO’s strategy for Beacon extends far beyond operational improvements — it’s a technology 
 play at its core.                                                                         |

QXO Inc. and Beacon Roofing Supply Inc. are in advanced discussions regarding
a potential acquisition in which QXO would acquire Beacon Roofing Supply for $124.35 per share of cash, valuing the deal at approximately
$11 billion.

The new offer is 10 cents higher per share than QXO’s original bid
in November.

A QXO spokesperson expressed optimism about the deal and stated that QXO
is confident it can double Beacon Roofing Supply’s EBITDA over the next five years. The company sees additional opportunities for
growth through mergers and acquisitions, with a goal of reaching more than $50 billion in revenue.

While the companies have not finalized the deal, QXO and Beacon Roofing
Supply described the ongoing talks as “friendly.” Both sides have agreed to conduct customary due diligence and work toward
a definitive agreement. Beacon Roofing Supply, meanwhile, has postponed its scheduled Investor Day on March 13 to avoid market distraction
during the negotiation period.

QXO makes new acquisition attempt for Beacon Roofing Supply

A QXO spokesman framed Beacon Roofing Supply as the entry point into the
building products industry.

“If we come to an agreement with Beacon, we expect it to be the first
of many acquisitions for QXO,” the spokesman said. “It will put us on a pathway to our stated goal of $50 billion in revenue.
Beacon is the second-largest distributor of roofing products in a large, $70 billion to $80 billion industry. It’s exactly the kind
of business we want as our foundation.”

QXO pointed to chair and CEO Brad Jacobs’ record of successfully
executing large-scale integrations during his time at XPO as evidence that the company is prepared to maximize Beacon’s potential.
XPO integrated Norbert Dentressangle and Con-way simultaneously in 2015, turning them into a cohesive, global organization and doubling
their profits between 2015 and 2018. QXO believes Beacon Roofing Supply offers similar upside if it agrees to the acquisition.

Beacon Roofing Supply’s business model aligns closely with the secular
growth trends that attracted QXO to the industry in the first place. The average commercial building is over 50 years old, and