QXO (QXO), a U.S. construction supplies distributor led by billionaire dealmaker Brad Jacobs, announced a $17 billion deal to acquire TopBuild (BLD), a building products distributor and installer in North America. BLD stock jumped 19.4% on Monday, while QXO stock fell 3.2%. The deal is expected to be completed in the third quarter of 2026. QXO has been on an acquisition spree, with TopBuild being the most significant transaction yet.
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QXO Bolsters Position with TopBuild Acquisition
QXO expects the deal to create a higher-margin business by combining its dominance in roofing, waterproofing, lumber-related building materials, and associated products with TopBuild’s insulation expertise. The company expects the deal to be highly accretive to its 2026 earnings and remains on track to achieve its goal of generating $50 billion in annual revenue.
Under the agreement, QXO is acquiring TopBuild for $505 per share, reflecting a 23.1% premium to its closing stock price on Friday. Notably, TopBuild stockholders will have the right to elect to receive $505 in cash or 20.2 shares of QXO common stock for each BLD share, provided that the total transaction value is 45% in cash and 55% in shares of QXO common stock. Also, QXO will expand its board of directors to include one nominee from TopBuild.
QXO Chairman and CEO Jacobs highlighted that TopBuild has an industry-leading adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin of about 18%. He expects the acquisition to give QXO a solid presence in the insulation sector and expand its exposure to large, complex projects such as data centers, where scale is crucial. QXO expects to achieve about $300 million in synergies from the integration of TopBuild by 2030.
Interestingly, QXO, which is new to the building products sector, completed the $11 billion acquisition of Beacon Roofing Supply in 2025. Furthermore, the company announced the completion of the $2.5 billion acquisition of Kodiak Building Partners earlier this month.
Is QXO a Good Stock to Buy?
With 10 unanimous Buys, Wall Street has a Strong Buy consensus rating on QXO stock. The average QXO stock price target of $33.25 indicates 37.3% upside potential. QXO has risen more than 80% over the past year.
