QXO announced Tuesday that it will nominate a slate of nominees to replace Beacon’s board of directors as it aims to acquire the building materials distributor.
“We are proposing a slate of high-caliber, independent director nominees who are astute at delivering value to shareholders of large public companies,” QXO Chairman and CEO Brad Jacobs said in the announcement. “If elected, our nominees would give Beacon’s shareholders a direct voice in advocating for an independent evaluation of QXO’s proposal.”
QXO late last month made a second $11 billion offer to acquire Beacon. The newly formed company had indicated that it would pursue acquisitions in order to rapidly gain scale in the building materials distribution segment.
Beacon’s board of directors, however, rejected both offers and suggested that they undervalued the company and its growth potential. In a statement Thursday, the board noted that it has overseen above-market growth and shareholder returns of more than 200% over the past five years.
“QXO’s director nominations appear to be an attempt to pressure Beacon’s board into accepting an unchanged offer price that significantly undervalues Beacon’s prospects for growth and value creation,” the statement added.
QXO also announced this week that the proposed acquisition was cleared by antitrust regulators in both the U.S. and Canada.
Beacon’s Investor Day event is scheduled for March 13.
