Building materials distributor Beacon announced Thursday that its board of directors had again rejected an unsolicited takeover bid from newly formed distributor QXO.
QXO, established by billionaire former XPO CEO Brad Jacobs last spring, made an original $11 billion bid for Beacon in November after its earlier effort to acquire Rexel was rejected. Beacon’s board rejected the offer and said that it undervalued the company.
QXO went public with its offer in January, then later in the month offered the same amount while suggesting it could mount a hostile takeover attempt.
Beacon said in Thursday's announced that its board unanimously rejected QXO’s second bid, as well.
“QXO has failed to improve its first and only proposal, which the board determined significantly undervalues the company and our prospects for growth and value creation,” Beacon Chairman Stuart Randle said in the announcement.
QXO responded that Beacon’s board offered no basis for that claim and no indication of any “actionable, third-party alternative.”
“We have made a very compelling offer, and Beacon should let its shareholders decide what is in their best interest,” Jacobs said in a statement.
QXO reiterated that it is prepared to wrap up the acquisition “shortly” after its latest tender offer expires later this month.
