Shares of Beacon Roofing Supply, Inc. (BECN) gained nearly 10% on Wednesday morning after building products distributor QXO made public its $11 billion proposal to buy Beacon Roofing Supply. The company also threatened a proxy fight after the roofing material supplier rebuffed its overture.
BECN is currently trading at $118.99, up $10.14 or 9.32%, on the Nasdaq. The stock opened its trading at $121.00 after closing Tuesday at $108.85. The stock has traded between $77.54 and $121.22 in the past 52-week period.
QXO has offered to acquire all outstanding shares of Beacon for $124.25 per share in cash. The proposal implies a total transaction value of about $11 billion and a 37% premium above Beacon's 90-day unaffected volume-weighted average price of $91.02.
The proposal implies a total transaction value of around $11 billion and a 37% premium above Beacon's 90-day unaffected volume-weighted average price of $91.02.
"Our all-cash offer provides compelling value. We believe Beacon shareholders have a right to evaluate our proposal, despite the attempt by Beacon's Board of Directors to withhold it from them," said Brad Jacobs, chairman and chief executive officer of QXO.
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