NEW YORK, February 12, 2026, 08:51 EST — Premarket
- On Feb. 11, QXO shares jumped 16.6%, closing at $27.06.
- QXO has agreed to acquire Kodiak Building Partners in a deal valued at about $2.25 billion, combining cash and stock.
- Investors are focused on the closing process, potential integration challenges, and trends in the housing market cycle.
QXO shares surged 16.6% on Wednesday, finishing at $27.06, following the announcement of its plan to acquire private competitor Kodiak Building Partners. (Finviz)
Billionaire dealmaker Brad Jacobs is pushing QXO to expand its reach and product range with this latest acquisition. The company, currently pulling in around $5 billion in revenue, aims to move into sectors where bigger competitors dominate. By acquiring Kodiak, QXO would branch out from roofing into lumber, trusses, gypsum, and a wider array of construction supplies. Sources familiar with the deal say the price tags Kodiak at an enterprise value roughly 10.7 times its projected 2025 EBITDA, a key cash-flow metric. (Reuters)
QXO announced plans to acquire Kodiak from Court Square Capital Partners for roughly $2.25 billion, expecting the deal to be “highly accretive” to earnings by 2026—meaning it should boost earnings per share. Jacobs described the acquisition as “highly complementary,” highlighting opportunities for cross-selling and using “AI-powered inventory management” to drive margin improvements. (QXO Investor Relations)
QXO will pay $2.0 billion in cash and issue 13.2 million shares, with an option to buy back those shares at $40 apiece. The deal is expected to close early in Q2 2026, the companies announced.
Kodiak pulled in roughly $2.4 billion in revenue in 2025 and runs 110 locations spread over 26 states. Nearly 40% of that year’s revenue was from Florida and Texas, where population growth has helped sustain building activity better than in some colder regions.
Jacobs has backed up the strategy with numbers as well as geography. Since QXO and Kodiak overlap on many suppliers, the merged firm could leverage that to negotiate better prices and speed up inventory turnover—assuming demand stays strong.
The competitive angle is clear. Jacobs positions QXO’s growth as a direct challenge to the dominance of Home Depot and Lowe’s in wholesale building materials, despite those retail giants expanding their own distribution networks.
Investors are closely monitoring if the Kodiak deal signals a fresh wave of M&A activity. Jacobs mentioned that QXO’s acquisition pipeline is still active, and the company has been boosting its financing capacity to chase additional targets.
But the trade carries well-known risks: a housing slump that drags on, mortgage rates staying elevated longer than anticipated, which hurts new builds and major renovations, and integration challenges that chip away at the expected cost savings.
Following Wednesday’s jump, traders will be watching closely for any delays in the deal timeline or hints that QXO is setting sights on a new target, either of which could shake up the stock once more.
The merger agreement features usual closing conditions, such as the expiration or termination of the Hart-Scott-Rodino antitrust waiting period, and establishes May 1, 2026 as the latest possible date for closing if it hasn’t happened by then, according to a filing.
