Building products distributor QXO offers to buy Beacon Roofing Supply - source
Adds background in paragraph 5-9
Nov 18 (Reuters) -Building products distributor QXO QXO.O has made an offer to acquire Beacon Roofing Supply BECN.O, according to a person familiar with the matter.
Shares of Beacon Roofing Supply rose 10% to $108.5 in afternoon trading. Beacon and QXO did not immediately respond to Reuters requests for comment.
If the talks are successful, a deal could be signed in the coming weeks. The terms of the offer being discussed is not yet known.
QXO, the company billionaire Brad Jacobs is seeking to launch into building services, had offered around $9.4 billion to acquire Rexel RXL.PA, which the French company rebuffed in September. Those talks are no longer active.
The approach marked the first major takeover attempt by QXO since its chairman Jacobs sought to buy companies in the sector.
QXO, which has a market value of $6.3 billion, in July said it raised funds that bolstered cash on hand to about $5 billion and said the company was debt free, giving it the firepower to pursue deals for expansion.
In July, QXO raised $620 million through a private placement and said Jared Kushner, son-in-law of former U.S. President Donald Trump, to its board of directors.
The company recently hired former Barclays global head of M&A Ihsan Essaid as its chief financial officer.
Herndon, Virginia-based Beacon is the largest publicly traded distributor of roofing materials and complementary building products in the U.S. and Canada, according to the company's website.
Reporting by Anirban Sen in New York and Kannaki Deka in Bengaluru; Editing by Arun Koyyur
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