QXO (NYSE:QXO) has struck a definitive agreement to acquire Kodiak Building Partners for approximately $2.25 billion, marking the second major move by billionaire chairman Brad Jacobs to consolidate the fragmented building products distribution industry.
The deal, consisting of $2 billion in cash and 13.2 million QXO shares, targets a strategic expansion into the Sun Belt and Mountain states.
Kodiak, a heavyweight in lumber, trusses, and construction supplies, generated $2.4 billion in revenue in 2025.
By absorbing Kodiak, QXO triples its total addressable market to more than $200 billion, positioning the firm as a direct challenger to wholesale operations at retail giants like Home Depot and Lowe’s.
Jacobs, who previously built XPO and United Rentals into industry leaders, is leveraging a $3 billion "war chest" recently bolstered by investments from Apollo Global Management and Temasek.
The transaction is expected to be highly accretive to 2026 earnings, with QXO planning to drive margins through AI-powered inventory management and procurement synergies—noting that 16 of Kodiak’s top 20 vendors already overlap with QXO’s existing network.