Quick Read
- Brad Jacobs’ QXO acquired Kodiak Building Partners for $2.25 billion (cash and stock).
- QXO shares soared by over 11% on the news, hitting a 52-week high.
- Kodiak Building Partners generated $2.4 billion in revenue in 2025 from building supplies.
- The acquisition fulfills a key condition of QXO’s recent $3 billion capital raise.
- QXO aims to be a tech-enabled disruptor in the $800 billion North American building products distribution industry.
NEW YORK (Azat TV) – QXO, the building supply company founded by serial entrepreneur Brad Jacobs, has acquired Kodiak Building Partners for $2.25 billion, a move that sent its shares soaring by over 11% today. This significant acquisition marks a pivotal step in QXO’s stated mission to become a tech-enabled disruptor in the vast $800 billion North American building products distribution industry.
The announcement follows QXO’s previous indication that a major acquisition was imminent, fulfilling a key condition of its recent $3 billion capital raise. Investors reacted positively to the news, pushing QXO’s stock to a 52-week high, reflecting confidence in Jacobs’ proven strategy of building powerhouse companies through strategic growth.
QXO’s Strategic Acquisition and Market Reaction
QXO officially announced its acquisition of Kodiak Building Partners for a total consideration of $2.25 billion. The deal comprises $2 billion in cash and the remainder in common stock. Kodiak Building Partners, operating as a U.S. distributor, generated approximately $2.4 billion in revenue in 2025 through its diverse offerings, which include lumber, trusses, windows and doors, and various other construction supplies.
The market’s immediate response was robust, with QXO shares surging as much as 12.5% on the news. By mid-morning, the stock maintained an impressive 11.3% gain, signaling strong investor approval. This surge propelled QXO’s stock to a new 52-week high, underscoring the perceived value and strategic fit of the acquisition.
Brad Jacobs’ Vision for Building Product Disruption
Brad Jacobs, known for founding and leading several multi-billion-dollar enterprises, established QXO just over two years ago with the ambitious goal of transforming the North American building products distribution sector. His vision centers on creating a tech-enabled company that can efficiently disrupt traditional supply chains and distribution models.
Last month, QXO successfully completed a $3 billion capital raise, primarily led by affiliates of Apollo Global Management. A crucial requirement of this investment was that the funds be utilized for at least one qualifying acquisition by July 15, 2026. The acquisition of Kodiak Building Partners directly fulfills this condition, demonstrating QXO’s commitment to its growth strategy and its ability to execute on its financial commitments.
Optimistic Timing and Future Outlook for QXO
Analysts suggest that the timing of this acquisition could be optimal for QXO and its shareholders. Any anticipated rebound in the growth of the North American construction market is now poised to yield even larger dividends for the newly expanded entity. Kodiak’s comprehensive product portfolio and established distribution network are expected to provide QXO with significant leverage in this environment.
The acquisition aligns with Jacobs’ well-documented acquisitive business plan, which typically involves consolidating fragmented industries and enhancing operational efficiency through technology and scale. This move positions QXO to capitalize on potential market upturns and further solidify its presence as a major player in the building supply sector.
The strategic acquisition of Kodiak Building Partners underscores Brad Jacobs’ consistent approach to market consolidation and value creation, leveraging substantial capital to achieve rapid scale and technological integration in a fragmented industry.