QXO said on Monday it secured an additional $1.8 billion in financing led by Apollo Global Management, Temasek and other investors, as billionaire Brad Jacobs’ firm targets acquisitions in the consolidating U.S. building-products industry.
The new commitment lifts total investment in QXO to $3 billion, after the building-products supplier raised $1.2 billion last week.
QXO said it structured the funding as a previously disclosed series of convertible perpetual preferred stock and will use the proceeds to support future acquisitions.
M&A in the U.S. building-products industry has increased as firms seek to scale and localize supply chains to offset tariffs, with demand supported by new housing, repair and renovation, and non-residential construction activity.
Industry 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.
QXO last year mounted a roughly $5 billion hostile bid for GMS, which ultimately went to Home Depot.
The company, however, closed its $11 billion deal for Beacon Roofing Supply in April.
Jacobs, who built multibillion-dollar companies in logistics, waste management and equipment rentals, has positioned QXO to pursue more deals in the fragmented sector, targeting $50 billion in annual revenues within a decade.
Shares of the Greenwich, Connecticut-based company were up about 1% in premarket trade.
Reuters
