TLDR
- QXO agreed to acquire TopBuild Corp. for $17 billion in a cash-and-stock deal
- The deal values each TopBuild share at $505, a 23% premium to Friday’s closing price
- The deal will make QXO the second-largest publicly traded building products distributor in North America
- Combined company will have over $18 billion in revenue and approximately 28,000 employees
- The deal is expected to close in Q3 2026, pending shareholder and regulatory approval
QXO stock rose around 3% Monday after the building products distributor announced a $17 billion deal to acquire insulation giant TopBuild Corp. over the weekend.
The per-share price of $505 represents a 23% premium to TopBuild’s closing price on Friday. TopBuild stock jumped nearly 6% on the news.
The deal is structured as roughly 45% cash and 55% QXO stock. TopBuild stockholders can elect to receive $505 in cash or 20.2 QXO shares per TopBuild share held, subject to proration.
*QXO TO ACQUIRE TOPBUILD FOR $17 BILLION$QXO buying $BLD for $17B
Brad Jacob’s is putting the war chest to use with a monster acquisition
TopBuild stockholders will have the right to elect to receive $505 in cash or 20.2 shares of QXO per each BLD share pic.twitter.com/YUsJrDD64j
— Negligible Capital (@negligible_cap) April 19, 2026
The boards of both companies have unanimously approved the transaction. It still requires shareholder and regulatory sign-off before it can close, which QXO expects to happen in the third quarter of 2026.
The deal is backed by a $3 billion term loan and up to $3 billion in bridge financing. A $600 million reverse termination fee framework is also part of the agreement.
CEO Brad Jacobs said the company has spent $13 billion on acquisitions over the past 11 months. The TopBuild deal is the largest of those by a wide margin.
A Rapid Expansion Strategy
QXO completed its $2.25 billion acquisition of Kodiak Building Partners on April 1, just weeks before announcing the TopBuild deal. Kodiak is one of the top distributors of lumber, trusses, and related building materials.
With TopBuild added, QXO’s addressable market would exceed $300 billion. The company has a longer-term target of $50 billion in annual revenue within the next decade through acquisitions and organic growth.
TopBuild is the largest distributor and installer of insulation and related building products in North America. It serves residential, commercial, and industrial markets from more than 450 locations across the U.S. and Canada.
QXO currently leads in roofing, waterproofing, and lumber-related products. Adding TopBuild’s insulation platform fills a major gap in its product lineup.
What the Combined Company Looks Like
After the deal closes, QXO will have approximately 28,000 employees and 1,150 locations across all U.S. states and seven Canadian provinces.
The combined fleet will include more than 10,000 vehicles. Combined adjusted EBITDA is projected at over $2 billion.
QXO expects the deal to be immediately earnings-accretive and to deliver around $300 million in synergies by 2030.
The most recent analyst rating on QXO is a Buy with a $35 price target. QXO is listed on the NYSE.
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