U.S. construction supplies distributor QXO struck a $17 billion deal on Sunday to acquire building products distributor and installer TopBuild, adding to a wave of acquisitions by the company led by billionaire dealmaker Brad Jacobs.
The deal will make QXO the second-largest publicly traded building products distributor in North America, with more than $18 billion of combined company revenue, the company said.
As part of the deal, Connecticut-based QXO said Florida-based TopBuild's shareholders can elect to receive $505 in cash or 20.2 shares of QXO common stock for each TopBuild share held on the condition that the total transaction is paid as about 45% in cash and 55% in shares of QXO common stock.
The $505 cash consideration represents a premium of 23.1% over insulation and commercial roofing firm TopBuild's last close of $410.31 on Friday, Reuters calculations showed.
QXO said that the deal, which has been unanimously approved by the boards of both companies, is expected to be immediately and substantially accretive to its earnings.
QXO has market capitalization of around $18.08 billion. TopBuild has a market capitalization of around $11.54 billion.
"Over the past 11 months, we've built QXO into a market leader through more than $13 billion of acquisitions, closing on Beacon in 2025 and Kodiak earlier this month. TopBuild will be our most significant acquisition yet." said Jacobs, the chairman and CEO of QXO.
'Critical mass'
"The TopBuild transaction will also give us critical mass in the insulation sector and expand our exposure to large, complex projects like data centers, where scale matters," said Jacobs, who is widely regarded as an M&A specialist.
A rapid buildout of the technology industry's energy-intensive data centers is increasingly being used for the development of artificial intelligence.
Jacobs, who has built multibillion-dollar companies in logistics, waste management and equipment rentals, has positioned QXO to pursue more deals. QXO counts U.S. President Donald Trump's son-in-law Jared Kushner as a board member.
QXO, a newcomer to the building products sector, completed an $11 billion acquisition of Beacon Roofing Supply last year. It also bid for GMS and threatened a hostile takeover, but ultimately lost out to home improvement chain Home Depot.
The deal for TopBuild, which is expected to close in the third quarter of 2026, adds to the uptick in mergers and acquisitions in the U.S. building-products industry as companies seek scale and localize supply chains to mitigate tariffs, with demand buoyed by new housing construction, repairs and renovations.
Following the deal, QXO said it will have around 28,000 employees, 1,150 locations across all 50 U.S. states and seven Canadian provinces, with a fleet size of more than 10,000 vehicles.
In February, QXO announced a $2.25 billion deal to buy U.S. distributor of building materials Kodiak Building Partners.
At the start of the year, QXO had secured $1.8 billion in financing, led by Apollo Global Management and Singapore's Temasek, after raising $1.2 billion previously.
QXO distributes roofing and related building products, using technology to help contractors and suppliers manage inventory, orders and customer service, according to its website. TopBuild is a leading installer and specialty distributor serving the construction industry across the United States and Canada, serving residential, commercial and industrial end markets, according to its website.
(Reporting by Mihika Sharma and Gursimran Kaur in Bengaluru; Editing by Will Dunham)
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