QXO Acquires TopBuild for $17B in Building Products Deal

QXO, Inc. (NYSE: QXO) has entered into a definitive agreement to acquire TopBuild Corp. (NYSE: BLD) for about $17 billion, marking a significant expansion in QXO’s footprint across the building products value chain. The acquisition, announced on April 19, 2026, is expected to close in the third quarter of 2026, pending customary closing conditions including shareholder approvals.

TopBuild is North America’s largest distributor and installer of insulation and related building products. The deal will combine QXO’s strong presence in roofing, waterproofing, lumber, and building materials with TopBuild’s insulation capabilities, creating a higher-margin, diversified business with enhanced value-added offerings.

The transaction values each TopBuild share at $505, representing a 19.8% premium to its 60-day volume-weighted average price. Shareholders can elect to receive either cash or QXO common stock, with the total consideration split approximately 45% in cash and 55% in stock. QXO will also expand its board to include a TopBuild nominee.

In 2025, TopBuild generated approximately $6.2 billion in net sales and $1.14 billion in adjusted EBITDA, reflecting full-year contributions from acquisitions. The purchase price implies a multiple of 14.9 times TopBuild’s 2025 adjusted EBITDA before synergies, and 11.8 times after expected synergies. QXO anticipates realizing $300 million in synergies by 2030 through cross-selling, procurement efficiencies, network optimization, and technology integration.

QXO recently completed its $2.25 billion acquisition of Kodiak Building Partners, a distributor of lumber and trusses, further bolstering its market position. Post-TopBuild acquisition, QXO will operate with over $18 billion in combined revenue and more than $2 billion in adjusted EBITDA, employing approximately 28,000 people across 1,150 locations in the U.S. and Canada.

Brad Jacobs, Chairman and CEO of QXO, stated, “This acquisition is our most significant to date, positioning QXO as the second largest publicly traded building products distributor in North America. TopBuild’s leadership in insulation and its industry-leading EBITDA margin of around 18% will enhance our operational excellence and customer service capabilities.” He added that QXO plans to adopt TopBuild’s operational best practices, including specialized teams focused on continuous improvement.

TopBuild CEO Robert Buck commented, “Joining QXO allows us to combine our insulation expertise with QXO’s scale and technology, unlocking cross-selling opportunities and driving growth. Our team’s strong track record, including a 10-year sales CAGR of 13% and adjusted EPS CAGR of 31%, sets a solid foundation for future success.”

The combined company will hold leading market positions: #1 in insulation and waterproofing, #2 in roofing, and top rankings in lumber and building materials across key geographies. The expanded product portfolio and enhanced service offerings aim to improve customer retention and pricing power.

Industry consolidation is expected to accelerate as competitors respond to the increased scale and capabilities of the combined entity. However, integration challenges include aligning corporate cultures, managing complex logistics, and realizing projected synergies within expected timelines.

Financial advisors for QXO include Morgan Stanley & Co. LLC as lead, with Barclays and Wells Fargo Securities also advising. Legal counsel is provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP. TopBuild is advised by Goldman Sachs & Co. LLC and RBC Capital Markets, with Jones Day as legal counsel.

QXO, headquartered in Greenwich, Connecticut, is the largest publicly traded distributor of roofing, waterproofing, and related products in North America and aims to reach $50 billion in annual revenues within the next decade through acquisitions and organic growth. TopBuild, based in Daytona Beach, Florida, operates over 450 locations and specializes in insulation installation and distribution across residential, commercial, and industrial markets.

The transaction is subject to regulatory approvals and customary closing conditions. Both companies emphasize the strategic fit and expected value creation from the combination, which is anticipated to be immediately accretive to QXO’s earnings.