About a month ago, QXO (QXO 6.01%) telegraphed that at least one acquisition would likely be coming in the next six months. The building supply company just announced one, and the market likes it.
QXO shares soared as much as 12.5% on the news this morning. As of 10:45 a.m. ET, the stock was still higher by 11.3% on the news.
Image source: Getty Images.
Building a powehouse
QXO was started by entrepreneur Brad Jacobs over two years ago to create a tech-enabled disruptor in the $800 billion North American building products distribution industry. Last month, the company announced a $3 billion capital raise led by affiliates of Apollo Global Management. One requirement of the investment was that the funds would be used for at least one qualifying acquisition through July 15, 2026.
Today, QXO announced one. The company is buying Kodiak Building Partners for a total of $2.25 billion. That consists of $2 billion in cash and the balance in common stock. In 2025, Kodiak, operating as a U.S. distributor, generated about $2.4 billion in revenue through its diverse offerings, which include lumber, trusses, windows and doors, and other construction supplies.
NYSE: QXO
Key Data Points
The timing might be optimal. Any rebound in growth of the North American construction market will now pay even larger dividends for QXO and its shareholders. That helps explain why the stock is hitting a 52-week high on the news. There might be more to come, too, based on Jacobs' acquisitive business plan to grow QXO.
