Finance
QXO adds $1.8 billion in firepower amid building products consolidation
Published by Global Banking & Finance Review®
Posted on January 12, 2026
2 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 12, 2026
2 min readLast updated: January 20, 2026
QXO secures $1.8 billion from Apollo and Temasek to drive growth in the building products sector, aiming for $50 billion in revenue within a decade.
By Anshuman Tripathy
Jan 12 (Reuters) - Billionaire Brad Jacobs' QXO said it has secured an additional $1.8 billion in financing, led by Apollo Global Management and Singapore's Temasek, as the building products supplier pursues buyouts amid consolidation in the industry.
The latest funding, announced on Monday, takes the total investment in the Greenwich, Connecticut-based company to $3 billion, after it raised $1.2 billion last week. Its shares rose about 4% in morning trading.
Other investors included PGIM, the asset management business of Prudential Financial, Morgan Stanley Investment Management and Iconiq, a source familiar with the investment matter told Reuters. QXO declined to comment.
The company said it structured the funding as a previously disclosed series of convertible perpetual preferred stock and plans to use the proceeds to support future acquisitions.
Mergers and acquisitions in the U.S. building-products industry has picked up pace as companies seek scale and localize supply chains to mitigate tariffs, with demand buoyed by new housing construction, repairs and renovations.
QXO, a newcomer to the building products sector, completed an $11 billion acquisition of Beacon Roofing Supply last year. It also made a bid for GMS and threatened a hostile takeover, but ultimately lost out to home improvement chain Home Depot.
Peers have also struck large deals.
Last year, Commercial Metals said it would acquire concrete supplier Foley Products for $1.84 billion, while roofing-material firm TopBuild bought rival SPI for $1 billion in cash.
Jacobs, who has built multibillion-dollar companies in logistics, waste management and equipment rentals, positioned QXO to pursue more deals in the fragmented sector, targeting $50 billion in annual revenue within a decade.
He stepped down as chairman from XPO and GXO Logistics in December last year.
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Tasim Zahid and Shilpi Majumdar)
Financing refers to the process of providing funds for business activities, making purchases, or investing. It can involve loans, investments, or other financial instruments.
Acquisition is the process of acquiring control of a company or assets by purchasing them. It is a common strategy for growth in business.
Market trends are the general direction in which a market is moving. They can indicate changes in consumer behavior, economic conditions, and industry developments.
M&A activity refers to mergers and acquisitions, where companies combine or purchase each other to enhance their market position, expand their reach, or achieve synergies.
Convertible perpetual preferred stock is a type of equity security that can be converted into a company's common stock at a later date, and it does not have a maturity date.
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