As QXO courts Beacon investors to tender their shares into QXO’s acquisition offer, the building materials distributor and technology company’s founder is reaching out directly to Beacon employees.
Jacobs — the serial entrepreneur behind XPO Logistics (and its spinoffs GXO and RXO), United Rentals and Waste Management — penned an open letter to Beacon staff that he shared on LinkedIn March 7.
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Sympathizing with Beacon employees who may be wondering what is going to happen with the offer and potential transaction, the letter acknowledges the uncertainty involved, noting that “it’s still up in the air whether QXO will be successful” in getting a deal done.
The letter outlined the value QXO sees in Beacon’s staff, noting the experience that attracted QXO to pursue it. Jacobs noted that the first thing he and the QXO leadership team would do — if a deal is struck — is to have a “listening tour” in which they would seek to gather input from all Beacon employees on two key questions of what Beacon does best and shouldn’t change and areas for improvement.
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See Jacobs’ letter in full below:
The letter follows the latest round of back-and-forth public statements between QXO and Beacon on March 4, when QXO re-extended its all-cash offer of $124.25 per share to 5 p.m. ET on March 10. QXO originally set a deadline of the end of Feb. 24 before extending it a day later to March 3.
In that latest extension announcement, Jacobs noted how Beacon’s top executives had recently sold considerable portions of their shares at $94.80 and $97.91 per share and called resistance from the company’s board of directors “indefensible.” Beacon fired back shortly after, reiterating its stance that QXO’s offer “substantially undervalues” the company and its growth prospects.
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Beacon will host an Investor Day in New York City on March 13.
More on QXO-Beacon
- Beacon 2024 Sales Near $10B Despite Sharp 4Q Seasonal Slowdown – Feb. 27
- QXO Unveils Slate of Directors to Replace Beacon’s, Gains Antitrust Clearance – Feb. 12
- QXO Says Beacon is Misrepresenting its Valuation to Shareholders (Premium) – Feb. 10
- QXO Urges Beacon to Let Shareholders Decide on Offer After Board Rejection– Feb. 6
- QXO Puts Ball in Beacon’s Court for Deal, Provides Communication Timeline (Premium) – Jan. 27
Lead photo by Mike Hockett/MDM
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