Lead image by MDM/Mike Hockett

Having frequented MDM headlines over the past 18 months, QXO now has its first distributor under its belt.

The company shared April 29 that it has completed its landmark purchase of Beacon Roofing Supply for $124.35, which values the deal at about $11 billion.

It cements QXO’s status as a major player in the B2B distribution space with its first acquisition, with Beacon to serve as the foundation that QXO will build upon as it pursues achieving $50 billion in revenue. It makes QXO the largest publicly traded distributor of roofing, waterproofing and complementary building products in the U.S.

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“Acquiring Beacon is a major step forward in our strategy to make QXO the leading tech-enabled company in the $800 billion building products distribution industry,” QXO Chairman and CEO Brad Jacobs said in a news release. “We’re excited to welcome Beacon’s talented team and, together, apply our proven playbook to accelerate growth, expand margins and create an unmatched customer experience.”

The purchase price represents a 10.8x multiple of Beacon’s consensus full-year 2025 EBITDA, and 10.1x its consensus full-year 2026 EBITDA.

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In Beacon, QXO gains a Herndon, VA-based organization that has nearly 600 branches across the U.S. and Canada, with a base of about 110,000 customers backed by approximately 8,000 employees. Beacon had 2024 revenue of $9.76 billion — up 7.1% from 2023 — which placed it at No. 5 on MDM’s 2024 Top Building Materials/Construction Distributors List.

QXO’s tender offer for Beacon’s common stock expired at the end of business on April 28, at which point the offer’s depositary and paying agent reported that approximately 72.06% of the issued and outstanding shares had been validly tendered and not withdrawn. That represented a significant jump from the 38.32% as of April 19.

Beacon is now officially a wholly owned subsidiary of QXO and its shares ceased trading on the Nasdaq Global Select Market before it opened on April 29.

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QXO spokesman Joe Checkler confirmed to MDM that Jacobs will ring the New York Stock Exchange opening bell on April 30 to mark the milestone, accompanied by 14 of his new Beacon colleagues on the NYSE podium, with dozens more QXO and Beacon staff on the trading floor. It’ll be Jacobs’ 10th time ringing the NYSE bell, as he and the QXO team most recently did on Jan. 17 when the company first began trading.

Concurrent with the transaction, Beacon’s branding is immediately replaced by QXO’s, which was made apparent by QXO’s website stating “Beacon is now QXO” as of April 29, noting any customer will use the same access credentials that they did for Beacon, while QXO’s homepage is now stocked full of product and solutison content that reflects Beacon’s offerings.

Meanwhile, QXO also closed its previously announced $830 million private equity placement.

Morgan Stanley acted as the lead financial advisor to QXO throughout the transaction process, while Paul, Weiss acted as lead legal counsel. J.P. Morgan was the lead financial advisor for Beacon.

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Deal Background

The deal closing ended a five-month public saga between QXO and Beacon that was abrasive for much of it. It began in November 2024 when a Wall Street Journal report first broke the news that QXO was pursuing Beacon with an unsolicited offer. A standoff ensued over the next few months and became testy, with both sides claiming the other had misrepresented each other’s claims about valuation. But that tone switched to amicable in March before the firms confirmed March 10 that they were working toward a deal, and terms of it were announced nine days later.

Beacon previously acknowledged that it had sought other options to QXO’s offer, but ultimately picked QXO as the best path forward.

“Since QXO made its initial offer last November, we have evaluated strategic alternatives to enhance value for all of our shareholders,” Beacon Chairman Stuart Randle said back on March 19. “Following our board’s comprehensive review, we concluded that this transaction is in the best interests of Beacon and its shareholders given the immediate premium and certainty of value in cash it offers, particularly in an uncertain environment.”

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Other News & Notes Surrounding QXO-Beacon

On April 21, QXO announced that Queen MergerCo — its wholly owned subsidiary — plans to offer $2 billion in Senior Secured Notes due 2032 to facilitate the Beacon transaction.

On April 16, QXO offered $500 million of common stock shares priced at $13.25 per share as another capital-raising move to help it move forward with expansion plans

On April 14, QXO announced the appointment of Val Liborski to the position of Chief Technology Officer, effective April 21. He formerly had roles at Yahoo, HelloFresh and Amazon.

Stay tuned to MDM for analysis of the QXO-Beacon deal and what it means for the building materials supply market.