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QXO, the Brad Jacobs-led company that has been targeting business consolidation in a fragmented building products industry, has made its second acquisition since its inception.
Wall Street immediately gave the private equity firm’s acquisition of Kodiak a giant round of applause: QXO (NYSE: QXO) Shares rose 16.61% on Wednesday, trading up $3.86 to $27.07. Its closing price was below the high of the day.
Kodiak will be acquired for $2 billion in cash and 13.2 million QXO shares. When the deal was announced, the total size of the transaction was estimated by QXO at $2.25 billion. But with today’s rising stock price, if that holds the equity value of the deal would approach $2.35 billion.
A QXO spokesperson described Kodiak as a “national distributor of essential building products including lumber, trusses, windows and doors, building materials, waterproofing and roofing, operating 110 locations in 26 states with approximately 5,500 employees serving more than 10,000 customers.”
Private equity firm Court Square Capital Partners is selling Kodiak to QXO. The deal is expected to close in the second quarter.
Logistics a basic strategy
Core ‘value’ behind QXO formation after Jacobs starts to move away from LTL carrier XPO (NYSE: XPO) and its various spin-offs, such as 3PL RXO (NYSE: RXO)was that the building supply industry was highly fragmented and a ripe candidate for an increase. The core of the business plan is that a successful build-up could happen not only because of the size, but also because of the more efficient logistics that would come out of it.
In a research note, Wells Fargo analyst Sam Reid said of the wait for the second deal after QXO’s only acquisition to date, Supply of beacon roofs: “We have a deal. After more than 40 days of virtually non-stop speculation, there is finally a transaction.”
The reference to more than 40 days is roughly the time since QXO announced it assuming a significant investment through a preferred stock offering from a group of investors led by Apollo Management. This gave the company a much larger pool to make acquisitions, eventually totaling $3 billion after a the second investment was announced in quick order after the first of the first days of 2026.
QXO had one too new offering of common shares last month
The analyst assumed a non-public target would be next
Reid said discussions with QXO in recent weeks led him to conclude the upcoming transaction would likely be a “non-public asset, a point of consistency throughout our conversations.” He said the takeover target was also likely to be a company with “residential housing exposure.”
