QXO announced it has completed its previously disclosed acquisition of TopBuild. The transaction significantly expands QXO’s scale and capabilities across the building products value chain.
Following the completion of the deal, QXO now holds leadership positions across several key building product categories in North America. The company said it is now No. 1 in insulation, No. 2 in roofing, No. 1 in waterproofing, and No. 1 or No. 2 in the lumber and building materials sector in key geographies served.
The acquisition broadens QXO’s product offering, adds installation capabilities, and expands the company’s exposure to fast-growing end markets, including data centers.
QXO said the transaction is expected to be substantially accretive to earnings. By 2030, the company expects to generate at least $300 million in annual synergies, largely from procurement, pricing, and cross-selling. QXO also expects to apply TopBuild’s operational excellence across its broader platform.
Along with the transaction closing, QXO announced that Alec Covington, TopBuild’s former Chairman, has joined QXO’s Board of Directors, effective immediately. Covington replaces Jared Kushner, who resigned from the board to focus on other commitments.
Under the terms of the merger agreement, former TopBuild shareholders will receive shares of QXO common stock or a combination of cash and shares of QXO common stock based on their elections and subject to proration and other terms and conditions in the merger agreement. TopBuild shares will stop trading on the New York Stock Exchange.
Morgan Stanley & Co. acted as lead financial advisor to QXO. Barclays and Wells Fargo Securities also acted as financial advisors to QXO. And Paul, Weiss, Rifkind, Wharton & Garrison served as legal counsel to QXO.
QXO is North America’s largest distributor and installer of insulation, the second-largest distributor of roofing products, the second-largest publicly traded distributor of lumber and building materials, and the largest distributor of waterproofing products. The company is targeting $50 billion in annual revenue within the next decade through accretive acquisitions and organic growth.
KEY QUOTES:
“By acquiring TopBuild, we’re broadening our product offering, adding installation capabilities, and expanding our exposure to fast-growing end markets like data centers. By 2030, we expect to generate at least $300 million in annual synergies largely from procurement, pricing, and cross-selling, while applying TopBuild’s operational excellence across QXO. The transaction is expected to be highly accretive to earnings and advance our plan to build a world-class company with $50 billion in revenue. I’m grateful to Jared for his significant contributions to the company, and I’m pleased to welcome Alec to the Board.”
Brad Jacobs, Chairman and CEO of QXO
