QXO to Buy TopBuild for $17 Billion

QXO has entered into a definitive agreement to acquire TopBuild Corp. in a transaction valued at approximately $17 billion, significantly expanding QXO’s scale and reach across the building products value chain.

The acquisition, which has been unanimously approved by both companies’ boards, is expected to be immediately and substantially accretive to earnings. The deal is subject to customary closing conditions, including shareholder approvals, and is expected to close in the third quarter of 2026.

TopBuild is the largest distributor and installer of insulation and related building products in North America. The combination brings together TopBuild’s insulation platform with QXO’s existing leadership positions in roofing, waterproofing, and lumber‑related building materials, creating a higher‑margin, value‑added offering for residential and commercial customers.

The transaction follows QXO’s $2.25 billion acquisition of Kodiak Building Partners, which closed April 1, 2026. With Kodiak and TopBuild combined, QXO expects to operate in an addressable market of more than $300 billion and hold top positions across key building product verticals:

• No. 1 in insulation
• No. 2 in roofing
• No. 1 in waterproofing
• No. 1 or No. 2 in lumber and building materials in key geographies

What They’re Saying

“Over the past 11 months, we’ve built QXO into a market leader through more than $13 billion of acquisitions,” said Brad Jacobs, chairman and CEO of QXO. “TopBuild will be our most significant acquisition yet, making QXO the second largest publicly traded building products distributor in North America, with more than $18 billion of combined revenue and more than $2 billion of adjusted EBITDA.”

Jacobs said the deal will give QXO critical mass in insulation and increase exposure to large, complex projects such as data centers, where scale and execution capabilities are key. He added that QXO plans to replicate TopBuild’s best practices across its platform, including deploying TopBuild’s “special OPS” teams to drive operational excellence and customer service.

TopBuild CEO Robert Buck said the combination will strengthen the company’s opportunities. “Together, we’ll enhance customer service, unlock meaningful cross‑selling opportunities, and drive continued growth and operating efficiency,” Buck said, noting TopBuild’s 10‑year sales CAGR of 13% and adjusted EPS CAGR of 31%.

Following the acquisition, QXO will employ approximately 28,000 employees, operate 1,150 locations across all 50 U.S. states and seven Canadian provinces, and manage a fleet of more than 10,000 vehicles.

Deal Terms and Financials

The transaction values TopBuild shares at $505 per share, representing a 19.8% premium to the company’s 60‑day volume‑weighted average price and a 23.1% premium to its closing price on April 17, 2026.

In 2025, TopBuild generated approximately $6.2 billion in net sales and $1.14 billion in adjusted EBITDA. QXO expects to achieve approximately $300 million in synergies by 2030, driven by cross‑selling, scaled procurement, logistics efficiencies, inventory optimization, and technology integration.