QXO Inc.’s acquisition of Beacon Roofing Supply Inc. marks a pivotal moment for both companies, positioning Beacon to significantly advance its digital commerce strategy and operational capabilities.
Under the terms of the definitive merger agreement, QXO will acquire Beacon Roofing Supply for $124.35 per share in cash, valuing the deal at approximately $11 billion, including debt. The companies expect the transaction, which their boards both unanimously approved, to close by the end of April.
QXO reaches acquisition agreement with Beacon Roofing Supply
The QXO acquisition of Beacon Roofing Supply is not simply about scale. It’s about transforming Beacon Roofing Supply’s already successful business model by leveraging QXO’s proven expertise in technology and operational efficiencies, the companies say.
QXO’s chairman and CEO, Brad Jacobs, highlighted that the Beacon Roofing Supply acquisition aligns with QXO’s broader strategic goal of becoming a dominant player in the $800 billion building products distribution industry.
“We will be applying our proven playbook to a platform ripe to deliver above-market organic growth and significant margin expansion,” Jacobs said.
Beacon Roofing Supply has already made significant strides in advancing its digital capabilities through its Ambition 2025 plan. That plan aims to make 25% of its residential and commercial sales digital by the end of 2025. The company’s digital tools — including Beacon PRO+ and Smart Order — have been instrumental in enhancing customer experience and driving operational efficiency.
Beacon PRO+ allows contractors to manage their businesses online, place orders, and track project progress with real-time data. The Smart Order tool, powered by EagleView’s aerial imagery, enables fast and accurate material ordering, giving contractors a streamlined way to manage their supply needs.
QXO expects the acquisition to supercharge this momentum. Jacobs has outlined a comprehensive strategy to modernize Beacon’s technology stack from the ground up. The plan begins with an internal audit to assess current technological strengths and gaps. After gathering input from Beacon’s employees and customers, QXO will prioritize investments based on their potential impact on customer satisfaction, employee efficiency, and business growth.
Jacobs envisions several high-impact technology upgrades that will drive Beacon’s growth.
Planned technology upgrades for Beacon Roofing
- Dynamic pricing. QXO plans to introduce an AI-driven dynamic pricing system that will allow Beacon to respond more effectively to market conditions, boosting margins and competitiveness.