QXO Acquires Kodiak for $2.25B to Boost Distribution

Written by Sandra Leggero

Sandra Leggero has a background in financial markets, having spent more than 9 years in commodities trading for several European and Asian companies. She holds a degree in Economics from the University of Pavia and specializes in emerging markets.

, | Updated: February 11, 2026

Key Moments

QXO has agreed to acquire private distributor Kodiak Building Partners in a transaction valued at about $2.25 billion.
The deal marks QXO’s second major acquisition, following its earlier $11 billion purchase of Beacon Roofing Supply.
QXO plans to pay $2 billion in cash and issue 13.2 million shares, valuing Kodiak at roughly 10.7 times projected 2025 EBITDA.

Strategic Expansion in Building Products Distribution

Building-products distributor QXO, led by chairman and CEO Brad Jacobs, has reached an agreement to acquire Kodiak Building Partners, a smaller privately held distributor, in a deal worth about $2.25 billion, according to two people with direct knowledge of the transaction.

Jacobs has been working to build QXO into a larger force in building materials distribution, seeking to compete more aggressively with retail operators Home Depot and Lowe’s that also have significant wholesale distribution businesses.

This acquisition represents QXO’s second major deal, coming after its approximately $11 billion purchase of Beacon Roofing Supply last year. It also follows a setback for Jacobs, whose hostile bid for drywall and ceilings distributor GMS was overtaken by Atlanta-based Home Depot in June.

QXO’s Growth Ambitions and Market Position

The failed GMS bid slowed Jacobs’ efforts to scale QXO’s annual revenue from roughly $5 billion to $50 billion and intensified scrutiny of his next strategic steps.

QXO, which has a market capitalization of more than $16 billion and focuses on distributing roofing and waterproofing products, competes in wholesale building materials distribution with Home Depot, which has a market value of about $388 billion, and Lowe’s, valued around $160 billion.

One of the people familiar with the transaction said the Kodiak purchase is expected to be followed by additional deals in the coming months, potentially involving both privately held and publicly traded targets. Both sources requested anonymity because the information is not public.

Kodiak declined to comment, and Jacobs did not immediately respond to a request for comment.

Investor Backing and Strategic Vision

Jacobs’ prior takeover efforts have been supported by investors including Affinity Partners – “the investment firm founded by Jared Kushner, U.S. President Donald Trump’s son-in-law” – and Sequoia Heritage, according to earlier disclosures.

Supply Chain Synergies and Product Expansion

QXO and Kodiak already share a significant portion of their supply base. Sixteen of Kodiak’s top 20 suppliers also work with QXO, the people said, which is expected to enhance QXO’s purchasing leverage and enable it to offer a broader array of products to overlapping customers.

Jacobs has indicated he intends to deploy artificial intelligence at QXO to better predict demand and optimize inventory levels, with the goal of lowering costs and improving margins.

While both QXO and Kodiak operate within the building products distribution industry, their product focus differs. QXO is concentrated on roofing and waterproofing, whereas Kodiak’s portfolio extends into lumber, trusses, gypsum, and a wider range of construction materials that are core to large homebuilders and regional contractors. According to Kodiak’s website, it also provides in-house fabrication and installation services.

Transaction Structure and Valuation

Under the terms outlined by one of the people familiar with the deal, QXO plans to pay $2 billion in cash and issue 13.2 million QXO shares to Kodiak’s owners. QXO will also retain an option to repurchase those shares at a price of $40 each.

Kodiak generates about $2.4 billion in annual revenue, operates 110 locations across 26 U.S. states, and employs roughly 5,500 people, according to its website.

Metric	QXO	Kodiak Building Partners
Deal value / Enterprise value reference	Buyer	About $2.25 billion
Annual revenue (approx.)	Roughly $5 billion	About $2.4 billion
Market value	More than $16 billion	Private company
Locations	Not specified	110 locations across 26 states
Employees	Not specified	About 5,500
Key product focus	Roofing and waterproofing materials	Lumber, trusses, gypsum, broader construction supplies; fabrication and installation services

People familiar with the transaction said QXO is valuing Kodiak at an enterprise value equal to around 10.7 times Kodiak’s projected 2025 earnings before interest, taxes, depreciation and amortization, and about 0.95 times its sales.

Macro Backdrop and Financing Capacity

The agreement comes at a time when elevated U.S. mortgage rates continue to pressure new homebuilding and large-scale repair and renovation projects. Despite this, building products distributors are positioning themselves for a potential recovery as interest rates are expected to move lower.

QXO has recently increased both its cash resources and borrowing capacity to pursue acquisitions, including through a $3 billion convertible preferred financing led by Apollo and Temasek.

Industry Consolidation Wave

Consolidation in the building products distribution sector has picked up pace over the past two years.

Home Depot acquired SRS Distribution for about $18.25 billion in 2024 and later reached an agreement for SRS to buy GMS. Lowe’s responded with its $8.8 billion purchase of Foundation Building Materials, along with an earlier deal for Artisan Design Group.