QXO secures US$1.8 billion financing led by Temasek, Apollo amid building products consolidation

[GREENWICH, Connecticut] Billionaire Brad Jacobs’ QXO said it has secured an additional US$1.8 billion in financing, led by Singapore’s Temasek Holdings and Apollo Global Management, as the building products supplier pursues buyouts amid consolidation in the industry.

The latest funding, announced on Monday (Jan 12), takes the total investment in the Greenwich, Connecticut-based company to US$3 billion, after it raised US$1.2 billion last week. Its shares rose about 4 per cent in morning trading.

Other investors included PGIM, the asset management business of Prudential Financial, Morgan Stanley Investment Management and Iconiq, a source familiar with the investment matter told Reuters. QXO declined to comment.

The company said it structured the funding as a previously disclosed series of convertible perpetual preferred stock and plans to use the proceeds to support future acquisitions.

Mergers and acquisitions in the US building-products industry has picked up pace as companies seek scale and localise supply chains to mitigate tariffs, with demand buoyed by new housing construction, repairs and renovations.

QXO, a newcomer to the building products sector, completed an US$11 billion acquisition of Beacon Roofing Supply last year. It also made a bid for GMS and threatened a hostile takeover, but ultimately lost out to home improvement chain Home Depot.

Peers have also struck large deals.

Last year, Commercial Metals said it would acquire concrete supplier Foley Products for US$1.84 billion, while roofing-material firm TopBuild bought rival SPI for US$1 billion in cash.

Jacobs, who has built multibillion-dollar companies in logistics, waste management and equipment rentals, positioned QXO to pursue more deals in the fragmented sector, targeting US$50 billion in annual revenue within a decade.

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He stepped down as chairman from XPO and GXO Logistics in December last year. REUTERS