QXO has agreed to acquire Kodiak Building Partners for approximately $2.25 billion in cash and stock, a deal that significantly broadens the fast-growing distributor’s footprint in lumber, trusses, windows, doors, roofing, and construction supplies and deepens its access to homebuilders and general contractors across high-growth U.S. markets.
The transaction includes $2.0 billion in cash and 13.2 million QXO shares. QXO retains the right to repurchase those shares at $40 per share. Companies expect the acquisition to close early in the second quarter of 2026, subject to customary closing conditions.
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 product portfolio includes lumber and components, trusses, windows and doors, waterproofing, roofing, and other exterior materials, supported by assembly, fabrication, and installation services. About 40% of Kodiak’s 2025 revenue came from Florida and Texas.
QXO said the acquisition expands its total addressable market to more than $200 billion and positions the company in every major building products category, including new entry points into gypsum and broader construction supplies while strengthening its exterior products offering.
Brad Jacobs, chairman and chief executive of QXO, 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 outlined six operational areas it expects to improve: procurement scale, pricing and cross-selling, network optimization, organizational redesign, manufacturing efficiency, and technology enhancements. The largest anticipated benefits come from procurement leverage, vendor relationships, and technology.
Vendor overlap between the two companies is substantial. QXO said 16 of Kodiak’s top 20 vendors are also suppliers to Beacon, QXO’s legacy roofing and exterior products platform. Executives said that overlap should enable early procurement and pricing improvements while expanding cross-selling opportunities across roofing, waterproofing, siding, decking, lumber, and components.
Implications for Distributors
For the broader distribution sector, the deal highlights how scale, category breadth and operational data are becoming central to competing for large builders and multi-site construction projects. Kodiak’s fabrication and installation capabilities, combined with QXO’s exterior product portfolio, create a more comprehensive offering spanning structural framing through exterior envelope materials.
QXO said the acquisition will improve demand visibility and inventory planning across categories and geographies. The company plans to invest in AI-enabled inventory management, analytics, and automation as part of the integration.
Kodiak also brings an active pipeline of smaller acquisitions. QXO said Kodiak has historically acquired regional distributors at mid-single-digit earnings multiples, a strategy 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, with potential for both market recovery and operational improvements to drive future growth.
Steve Swinney, Kodiak’s co-founder and chief executive, said the transaction “unlocks new opportunities for our customers and employees” and builds on the company’s growth over the past 15 years, including eight years under Court Square Capital Partners.
Jacobs has built multiple multibillion-dollar businesses through acquisition, including United Rentals and XPO, as well as XPO spin-offs GXO and RXO. He launched QXO in 2024 with a plan to build a $50 billion company in the building products distribution market through acquisitions and operational improvements.
Advisors to QXO on the transaction include Morgan Stanley and Wells Fargo. Kodiak was advised by RBC Capital Markets and KeyBanc Capital Markets. Court Square Capital Partners has owned Kodiak since 2017.
For distributors, the transaction underscores an accelerating consolidation trend in building products and a growing emphasis on combining physical scale with procurement leverage, category expansion, and technology-driven operations.
Do not miss any content from Distribution Strategy Group. Join our list.
