QXO announced it has entered into a definitive agreement to acquire TopBuild for approximately $17 billion, significantly expanding its scale across the building products value chain. The transaction, which has been unanimously approved by both companies’ boards, is expected to close in the third quarter of 2026, subject to shareholder and regulatory approvals.
The combination will position QXO as the second-largest publicly traded building products distributor in North America, with more than $18 billion in combined revenue and over $2 billion in adjusted EBITDA. The deal follows QXO’s recent acquisition of Kodiak Building Partners and continues its strategy of rapid consolidation in the sector.
TopBuild, the largest distributor and installer of insulation products in North America, brings complementary capabilities to QXO’s existing portfolio in roofing, waterproofing, and lumber-related materials. The combined company will hold leading market positions across multiple verticals, including insulation, roofing, and building materials.
The acquisition is expected to enhance QXO’s exposure to large-scale construction projects, including data centers, while improving margins through expanded value-added services and operational efficiencies.
Under the terms of the agreement, TopBuild shareholders will receive $505 per share, payable in a mix of cash and QXO stock. The transaction implies a premium of nearly 20 percent to TopBuild’s recent trading levels. QXO also expects to generate approximately $300 million in synergies by 2030 through cross-selling opportunities, procurement efficiencies, and operational optimization.
Following the close, the combined company will operate approximately 1,150 locations across North America, supported by a workforce of around 28,000 employees and a fleet of more than 10,000 vehicles.
The transaction represents a major step in QXO’s strategy to build a tech-enabled leader in the building products distribution industry, targeting significant growth through acquisitions and operational integration.
KEY QUOTES:
“Over the past 11 months, we’ve built QXO into a market leader through more than $13 billion of acquisitions, closing on Beacon in 2025 and Kodiak earlier this month. TopBuild will be our most significant acquisition yet, making QXO the second largest publicly traded building products distributor in North America, with more than $18 billion of combined company revenue and more than $2 billion of combined company adjusted EBITDA.”
“The TopBuild transaction will also give us critical mass in the insulation sector and expand our exposure to large, complex projects like data centers, where scale matters. TopBuild has a deep bench of best-in-class operators, reflected in its industry-leading adjusted EBITDA margin of approximately 18%. We plan to replicate their best practices across QXO, including deploying their ‘special OPS’ teams to continuously improve operational excellence and customer service.”
Brad Jacobs, Chairman And Chief Executive Officer, QXO
“We’re excited to join QXO and combine our leadership in insulation installation and specialty distribution with QXO’s scale, technology, and procurement capabilities. Together, we’ll enhance customer service, unlock meaningful cross-selling opportunities, and drive continued growth and operating efficiency. I’m proud of our team’s track record, including a 10-year sales CAGR of 13% and adjusted EPS CAGR of 31%. Thank you to the entire TopBuild team for delivering these exceptional results.”
Robert Buck, Chief Executive Officer, TopBuild
