QXO Inc. has agreed to acquire Kodiak Building Partners for approximately $2.25 billion in cash and stock.
The move expands QXO into lumber, trusses, windows, doors and construction supplies. At the same time, it setts the stage for technology-driven operating changes across a broader network of yards and categories.
The transaction includes $2.0 billion in cash and 13.2 million QXO shares. QXO retains the right to repurchase those shares at $40 each. The companies expect to close the deal early in the second quarter of 2026, subject to customary conditions. QXO said it expects its acquisition of Kodiak Building Partners to be highly accretive to earnings in 2026.
In January, QXO had expanded its previously announced financing to $3 billion, increasing its capacity to pursue acquisitions as it targets consolidation opportunities in the building-products distribution sector.
About the QXO acquisition of Kodiak Building Partners
Kodiak generated approximately $2.4 billion in revenue in 2025. The company operates 110 locations across 26 states with about 5,500 employees and serves more than 10,000 customers. Its portfolio includes lumber and components, trusses, windows and doors, roofing, waterproofing and other exterior materials, supported by assembly, fabrication, and installation services. About 40% of Kodiak’s revenue last year came from Florida and Texas.
QXO said the acquisition of Kodiak Building Partners expands the former’s total addressable market to more than $200 billion. It also places QXO into every major building products category, including new positions in gypsum and broader construction supplies while strengthening its exterior products platform.
Brad Jacobs, QXO’s chairman and CEO, said the combination will allow the company to “deliver more value to customers across our combined base by cross-selling products and support services, and with a greater presence in key markets,” adding that integration will focus on procurement scale, network optimization and “AI-powered inventory management.”
QXO identified six areas for improvement:
- Procurement scale
- Pricing and cross-selling
- Network optimization
- Organizational redesign
- Manufacturing efficiency
- Technology enhancements
Executives said they expect the largest gains to come from procurement leverage, vendor relationships, and technology.
Vendor overlaps are significant. QXO said 16 of Kodiak’s top 20 vendors are also suppliers to Beacon Roofing Supply, QXO’s roofing and exterior products platform. That overlap is expected to support early procurement and pricing improvements and expand cross-selling across roofing, waterproofing, siding, decking, lumber and components.
For distributors, the transaction underscores how scale across categories, combined with better demand data and inventory planning, is becoming central to serving large builders and multi-site construction projects. Kodiak’s fabrication and installation capabilities, paired with QXO’s exterior product footprint, create a broader offering that spans structural framing through exterior envelope materials.
How QXO plans to invest in AI
QXO said it plans to invest in AI-enabled inventory management, analytics and automation as part of the integration to improve forecasting and inventory planning across locations and categories.
Kodiak also brings a track record of acquiring smaller regional distributors at mid-single-digit earnings multiples — a strategy QXO said it intends to continue.
QXO executives said current conditions in residential construction present an attractive entry point. With housing activity in a cyclical slowdown, the company believes it is acquiring Kodiak at a favorable point in the cycle.
Steve Swinney, Kodiak’s co-founder and CEO, said the transaction “unlocks new opportunities for our customers and employees” and builds on Kodiak’s growth over the past 15 years under owner Court Square Capital Partners.
Jacobs launched QXO in 2024 with a goal of building a $50 billion company in the building products distribution market through acquisitions and operating improvements. Advisors to QXO on the transaction include Morgan Stanley and Wells Fargo. Kodiak was advised by RBC Capital Markets and KeyBanc Capital Markets.
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