QXO Makes Its Biggest Grab Yet

QXO moved on TopBuild Monday like a buyer who had already decided the whole aisle was coming home. The company agreed to acquire TopBuild for about $17 billion, a move that would make QXO the second largest publicly traded building products distributor in North America. TopBuild stock jumped sharply on Monday, trading up about 19% to $489.83 by Monday's close, while QXO was down about 3.2% to $24.22. The market’s split-screen response fit the deal itself, with TopBuild getting the premium and QXO taking on a much bigger reach across the construction supply chain.

The deal was unanimously approved by both boards and is expected to close in the third quarter of 2026, subject to customary closing conditions and approval by the shareholders of TopBuild and QXO. TopBuild shareholders can elect to receive $505 in cash or 20.2 QXO shares for each share they own, with the overall mix set at about 45% cash and 55% QXO stock. That cash option represents a 23.1% premium to TopBuild’s April 17 closing price of $410.31. That is one way of saying QXO did not show up with a bargain-bin offer.

For all the attention on the premium, TopBuild also brings a very practical expansion of QXO’s footprint. TopBuild is the largest distributor and installer of insulation and related building products in North America, and QXO said TopBuild generated about $6.2 billion of 2025 net sales and about $1.14 billion of adjusted EBITDA, adjusted for acquisitions completed during the year. QXO said the combined company would have more than $18 billion in revenue and more than $2 billion in adjusted EBITDA, while holding major positions across insulation, roofing, waterproofing, and lumber-related materials. QXO was not just buying volume. It was buying a broader position across the construction supply chain.

That helps explain why Brad Jacobs keeps moving as if the warehouse aisle has a countdown clock. QXO completed its roughly $2.25 billion acquisition of Kodiak Building Partners on April 1, and Jacobs said the company has built itself through more than $13 billion of acquisitions over the past 11 months. QXO also said the TopBuild deal is expected to be immediately and substantially accretive to earnings and could produce about $300 million of synergies by 2030. QXO increasingly looks like a company trying to buy entire categories before everyone else finishes reading the price tag.

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