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Workers install roofing on an apartment complex under construction in Lehi, Utah, on Friday, Jan. 7, 2022.
- In a Monday interview with CNBC's Jim Cramer, Beacon Roofing CEO Julian Francis described the company's communications with QXO, a building products distributor looking to acquire his company.
- Beacon Roofing has rebuffed a few takeover offers from QXO, and on Monday the latter announced it gave an offer directly to shareholders for $124.25 in cash.
- "I'm not going to speculate on what the board determines the value of the company is, but what we're dealing with right now is an offer for $124.25 per share," he said. "We determined at the time, the board determined at the time that that was insufficient, we went back and tried to be constructive with, with QXO."
In a Monday interview with CNBC's Jim Cramer, Beacon Roofing CEO Julian Francis described the company's communications with QXO, a building products distributor looking to acquire his company.
"I'm not going to speculate on what the board determines the value of the company is, but what we're dealing with right now is an offer for $124.25 per share," he said. "We determined at the time, the board determined at the time that that was insufficient, we went back and tried to be constructive with, with QXO."
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Beacon, one of the major roofing materials suppliers in the U.S., has rebuffed a few takeover offers from QXO. On Monday QXO the latter announced it gave an offer directly to shareholders for $124.25 in cash. Francis claimed Beacon's constructive efforts with QXO meant it tried to engage and have a conversation with the company, to "let them under the hood to show them what we were capable of doing and to revalue the company based on what we were prepared to share with them."
The company had said in a statement QXO's offer "significantly undervalues the company and its prospects for growth and future value creation." QXO CEO Brian Jacobs said in the Monday statement, "Our compelling offer would get cash into the hands of Beacon shareholders immediately at a significant premium to the unaffected share price," and that Beacon would be "a key part of our plan to become a forward-looking leader in building products distribution."
Francis said Beacon is "in great shape," even during a tough period for the real estate industry, with a high interest rate environment and difficult commercial building landscape following the pandemic. He declined to answer directly when Cramer asked whether Beacon's value would fall if QXO ceased its acquisition efforts, but he emphasized the value of the company's business across the U.S. and Canada.
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"We are in all of these communities, we're in Ashville, we're in L.A., we're in Augusta, we're in these places that get hit," he said. "Our people are part of those communities, and we're very proud of the work we do, helping rebuild these communities. It's a terrific industry, it's a terrific job, we've got terrific customers, and terrific shareholders."
QXO did not immediately respond to request for comment.
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