Latest acquisition by Brad Jacobs’ QXO building products rollup is largest so far

About 13 months aft Brad Jacobs-founded QXO announced its archetypal acquisition arsenic portion of his quest to rotation up a fragmented gathering products industry, the institution has made a 3rd purchase, its biggest 1 yet.

QXO (NYSE: QXO) announced Sunday that it was acquiring TopBuild Corp. (NYSE: BLD) for astir $17 billion.

QXO’s earlier acquisitions were Beacon Roofing Supply successful March 2025 for astir $11 billion, and Kodiak, a $2.25 cardinal woody that closed April 1.

In a prepared statement, QXO said the TopBuild deal, erstwhile completed, would marque it the second-largest publically traded gathering products company. The largest publicly-traded gathering products institution is Ferguson Enterprises (NYSE: FERG).

Ferguson has a marketplace capitalization of $50.6 billion, per Barchart. That aforesaid accusation work astatine the adjacent of concern Friday reported QXO’s marketplace capitalization astatine $17.7 billion, astir the aforesaid magnitude of wealth it spent to get TopBuild.

Since QXO CEO Jacobs archetypal announced his caller task pursuing the restructuring of XPO (NYSE: XPO), which included the spinoff of 3PL RXO (NYSE: RXO) and declaration logistics supplier GXO (NYSE: GXO), the program down QXO had logistics arsenic a cardinal strategy. Jacobs said repeatedly that the fragmentation of the gathering products manufacture made it a campaigner for a rollup, but with the occurrence of it depending to a ample grade connected utilizing much businesslike logistics crossed a wider basal of operations arsenic a operator of profitability.

Tops successful respective gathering products fields

QXO said aft the woody is complete, it volition beryllium the fig 1 supplier successful North America of insulation, waterproofing, fig 2 successful roofing, and fig 1 oregon 2 successful the lumber and gathering worldly sector, depending connected geography.

TopBuild’s banal has been connected a beardown tally successful the past year, rising astir 43.8% during the past 52 weeks. The imaginable of Jacobs’ hunting for acquisition targets successful the gathering products abstraction is believed to person fixed a assistance to companies successful that sector.

TopBuild’s banal closed Friday astatine $410.31. Under the QXO deal, each stock of TopBuild volition beryllium valued astatine $505, a 23.1% premium to the closing price.

Shareholders of TopBuild person 2 options to get paid. They tin person the $505 successful cash, oregon 20.2 shares of QXO stock. Friday’s QXO closing terms of $25 translates to $505 per stock for a shareholder exchanging TopBuild shares for those of QXO.

Soaring banal price

But that second prime besides offers the upside of QXO stock, which has risen much than 90% successful the past year. That is not astonishing fixed that a twelvemonth agone QXO was thing much than the Beacon woody having been announced, Jacobs’ way grounds and a heap of currency and different assets, since QXO had not gotten started arsenic a existent operating institution successful the gathering products field. (The Beacon acquisition closed successful precocious April 2025).