QXO, Inc. to Acquire Kodiak Building Partners for $2.25 Billion
QXO, Inc. (NYSE: QXO) announced today that it has entered into a definitive agreement to acquire Kodiak Building Partners (“Kodiak”) from Court Square Capital Partners for approximately $2.25 billion. The acquisition is expected to be highly accretive to QXO’s 2026 earnings and significantly expand the company’s addressable market to more than $200 billion.
The transaction represents a combination of $2.0 billion in cash and 13.2 million QXO shares. QXO retains the option to repurchase these shares at $40 per share. The acquisition is anticipated to close early in the second quarter of 2026, subject to customary closing conditions.
Strategic Rationale
The acquisition of Kodiak Building Partners complements QXO’s existing business portfolio and provides an opportunity to deliver enhanced value to its customers. By integrating Kodiak’s product and service offerings, QXO aims to:
- Expand its presence in key U.S. markets, particularly in the Sun Belt and Mountain states
- Increase cross-selling opportunities across its combined customer base
- Leverage scaled procurement, network optimization, and technology-driven efficiencies to accelerate margin growth
Brad Jacobs, Chairman and Chief Executive Officer of QXO, commented, “The acquisition of Kodiak is highly complementary to our existing business. We’ll be able to deliver more value to customers across our combined base by cross-selling products and support services, and with a greater presence in key markets. We expect the integration to accelerate margin expansion through scaled procurement, network optimization, AI-powered inventory management, and other tech-enabled operating efficiencies. Our acquisition pipeline remains very active, with plenty of dry powder from our recently announced equity financings led by Apollo and Temasek.”
About Kodiak Building Partners
Kodiak Building Partners is a leading U.S. distributor of construction products and services, specializing in lumber, trusses, windows and doors, waterproofing, roofing, and complementary exterior products. In addition, Kodiak provides value-added assembly, fabrication, and installation services, which enhance its end-to-end solutions for customers.
In 2025, Kodiak generated approximately $2.4 billion in revenues, with a strong concentration in high-growth regions such as Florida and Texas. These states collectively contributed roughly 40% of Kodiak’s total revenue, reflecting the company’s deep market penetration and the strong underlying growth in the building sector. Over the past decade, building activity in these regions has consistently outpaced national growth rates, positioning Kodiak as a market leader in its operating geographies.
Steve Swinney, Co-Founder and Chief Executive Officer of Kodiak Building Partners, said, “QXO is the most exciting company in the industry. By joining forces, we’re moving from strength to strength to unlock new opportunities for our customers and employees. I want to thank our employees for building a high-quality business at Kodiak and for the value created over the past 15 years, including the last eight with Court Square. I look forward to an even more exciting future as part of QXO.”
Financial Highlights
The total consideration for Kodiak is approximately $2.25 billion, comprised of:
- $2.0 billion in cash
- 13.2 million QXO shares, with the right of repurchase at $40 per share
The acquisition is expected to be highly accretive to QXO’s earnings in 2026, contributing to both top-line growth and margin expansion. The combined entity is projected to benefit from operational synergies, including:
- Optimized procurement processes
- Enhanced inventory management through AI-driven systems
- Streamlined supply chain operations
- Expanded product and service offerings to existing customers
The integration of Kodiak’s structural and exterior construction products with QXO’s current range will enable the company to grow both market share and wallet share with large homebuilders. This aligns with QXO’s long-term strategy of becoming a preferred supplier across the full project lifecycle of multisite developments and master-planned communities.
Market Expansion and Strategic Impact
By acquiring Kodiak, QXO will significantly expand its addressable market to more than $200 billion. Kodiak’s geographic footprint in high-growth regions, combined with QXO’s existing capabilities, positions the company to capitalize on long-term housing trends and increased demand for residential and commercial construction products.
The acquisition enhances QXO’s ability to:
- Offer a broader array of products and services to national and regional builders
- Cross-sell complementary solutions across the combined customer base
- Achieve operational efficiencies through AI-powered inventory and logistics management
- Optimize distribution networks to better serve high-demand regions
Brad Jacobs emphasized the long-term strategic benefits, stating, “This acquisition is not just about scale; it’s about improving our ability to serve customers across the U.S. more effectively. By integrating Kodiak’s offerings with QXO’s existing products and services, we will strengthen our position as a trusted partner in the construction industry.
Leadership Commentary
Both QXO and Kodiak leadership highlighted the cultural and operational fit between the two organizations. Steve Swinney noted the strong alignment of values, saying, “Our teams share a commitment to customer success and operational excellence. Joining forces with QXO allows us to continue building on Kodiak’s legacy while delivering additional value to our employees, customers, and stakeholders.”
Brad Jacobs added, “We are excited to welcome Kodiak’s talented team into QXO. Together, we will unlock new growth opportunities, deliver innovative solutions to our customers, and further strengthen our position as a leading supplier in the construction industry.”
Advisory Teams
QXO and Kodiak engaged leading financial and legal advisors to support the transaction:
- QXO Advisors: Morgan Stanley & Co. LLC and Wells Fargo served as financial advisors, with Paul, Weiss, Rifkind, Wharton & Garrison LLP providing legal counsel.
- Kodiak Advisors: RBC Capital Markets and KeyBanc Capital Markets acted as financial advisors, with Dechert LLP providing legal counsel.
Closing Timeline
The transaction is expected to close early in the second quarter of 2026, pending the satisfaction of customary closing conditions. Once completed, the integration of Kodiak into QXO’s operations is expected to drive significant synergies, accelerate margin growth, and expand market reach across the United States.
SOURCE LINK: https://www.businesswire.com/
