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QXO said builders, general contractors and large commercial projects such as data centers present the greatest opportunity because those customers typically purchase roofing, insulation, waterproofing, lumber, doors, windows, and other building products for the same job.

The executive changes continue UNFI’s efforts to simplify its organizational structure while strengthening coordination between sales, operations, and technology.

The acquisition reflects continued consolidation in the packaging and food service distribution sector, where distributors are using acquisitions to expand product categories, strengthen sourcing capabilities and offer customers a broader range of consumable products through a single supplier.

IFDA represents the U.S. foodservice distribution industry, which the association estimates at $400 billion in annual sales.

Overall, the Beige Book suggests distributors entered the second half of 2026 with healthy demand across many industrial markets but continued pressure on profitability

Executives said the merger expands the company’s geographic footprint, supplier network and value-added service capabilities while providing additional scale in purchasing, warehouse operations and back-office functions.

The transaction underscores continued merger activity in the automotive distribution sector as larger operators seek greater purchasing power, broader geographic coverage and increased investment in technology to compete in an increasingly consolidated market.

This transaction marks one of the year’s largest ownership changes involving a publicly traded industrial distributor and continues the broader trend of private equity firms consolidating specialty distribution businesses with an emphasis on long-term growth and acquisition strategies.

The company expects approximately $320 million in net capital expenditures this year, equal to about 3.5% of projected sales. Spending will support distribution center capacity and automation, FMI devices, and information technology infrastructure.

Within trade services, margins for machinery and vehicle wholesalers fell 8.4%, while food and alcohol wholesaling margins also declined.