QXO has secured QXO $1.8 billion financing as it continues to pursue acquisitions in the consolidating US building products industry. The funding round was led by Apollo Global Management and Singapore-based Temasek, strengthening the company’s balance sheet as it targets further buyouts.
The new capital brings total investment in the Greenwich, Connecticut-based company to $3 billion, following a $1.2 billion raise completed last week. QXO shares rose around 4% in morning trading after the announcement.
Additional investors in the financing include PGIM, the asset management arm of Prudential Financial, Morgan Stanley Investment Management, and Iconiq, according to a source familiar with the matter. QXO declined to comment on the investment.
The company said the financing was structured as a previously disclosed series of convertible perpetual preferred stock and that the proceeds will be used to support future acquisitions. The QXO $1.8 billion financing is expected to give the company added flexibility as it looks to expand through further consolidation deals.
Deal activity across the US building products sector has increased as companies look to scale operations and localize supply chains to reduce tariff exposure. Demand has also been supported by new residential construction, along with repair and renovation activity.
QXO, which entered the building products industry recently, completed an $11 billion acquisition of Beacon Roofing Supply last year. The company also pursued a bid for GMS and signaled a potential hostile takeover but ultimately lost the deal to Home Depot.
Other industry players have also completed major transactions. Commercial Metals agreed last year to acquire concrete supplier Foley Products for $1.84 billion, while roofing materials company TopBuild purchased rival SPI for $1 billion in cash.
Brad Jacobs, the billionaire founder behind QXO, has built large-scale businesses across logistics, waste management, and equipment rentals. He has positioned QXO to pursue additional consolidation opportunities in a fragmented market, with a long-term goal of reaching $50 billion in annual revenue within ten years. Jacobs stepped down as chairman of XPO and GXO Logistics in December last year.
