After signaling a second acquisition was in the works through a series of funding announcements in January, QXO has announced its much anticipated move to buy another building materials distributor.

On Feb. 11, QXO said it has entered into a definitive agreement to acquire Kodiak Building Partners from private equity Court Square Capital Partners for approximately $2.25 billion.

The purchase price comprises $2.0 billion of cash and 13.16 million shares, with QXO retaining the right to repurchase these shares at $40 per share.

Kodiak ranked No. 13 on MDM’s 2025 Top Distributors List for Building Materials/Construction, based on annual revenue of about $3 billion in 2024 ($2.4 billion in 2025, according to QXO). Upon completion of the acquisition, expected to close early in the second quarter, QXO will have acquired two major building materials distributors on the top lists, joining legacy Beacon (ranked No. 4) that it acquired for $11 billion in mid-2025.

This latest move will provide QXO a considerable foothold in nearly every major building products category.

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The transaction is expected to be “highly accretive” to QXO’s 2026 earnings and company officials expect it to expand its current addressable market to more than $200 billion.

How Kodiak Fits In

As a distributor of lumber, trusses, windows and doors, construction supplies, waterproofing, roofing and complementary exterior products, as well as value-added assembly, fabrication and installation services, Kodiak will complement the existing QXO business (made up of legacy Beacon) and expand its sales opportunities for homebuilders and large general contractors.

Significant vendor overlap: 16 of Kodiak’s 20 vendors are shared with legacy Beacon, according to a QXO spokesperson — adds cross-selling opportunities, and the integration also adds support services and increases the company’s presence in key markets.

Kodiak operates 110 locations across 26 states with concentrations in the Sun Belt and Mountain states. About 40% of Kodiak’s 2025 revenues were generated in Florida and Texas, where building market growth has consistently outpaced national market growth over the last decade, QXO officials wrote.

A QXO spokesperson told MDM that the highly fragmented segments Kodiak operates in offers “substantial consolidation runway aligned with our long-term path toward a $50 billion revenue company.”

“We expect the integration to accelerate margin expansion through scaled procurement, network optimization, AI-powered inventory management and other tech-enabled operating efficiencies,” QXO Chairman and CEO Brad Jacobs said in a news release.

A QXO spokesperson said the company will invest in analytics and automation to build a “modern operating backbone” to drive margin expansion.

The Vision

“EBITDA synergies are expected from early procurement, pricing, and operating wins, supporting a credible path to doubling EBITDA over several years through six controllable levers: scaled procurement, pricing and cross-sell, network optimization, organizational redesign, manufacturing efficiency, and technology enhancements,” a QXO spokesperson told MDM.

The two largest drivers of synergies are procurement scale, vendor leverage and technology.

• • • QXO believes its “buying at the bottom” of the housing cycle.
    • The purchase triples QXO’s existing market opportunity and expands its total addressable market to over $200 billion.
    • QXO now moves into lumber, trusses, gypsum and construction supplies, with complementary fabrication, assembly and installation capabilities, creating “a more complete offering in exterior products and strategic entry points into interior categories and services.”
    • The move enables QXO to build a “modern operating backbone” through AI-enable inventory management, analytics and automation investments to improve drive margin expansion.
    • Ultimately, the deal sids in a long-term path toward a $50 billion revenue company.

Kodiak Building Partners CEO and Co-Founder Steve Swinney called QXO the “most exciting company in the industry.”

“By joining forces, we’re moving from strength to strength to unlock new opportunities for our customers and employees,” he said.

Hear more from Steve Swinney on the MDM Podcast: How Kodiak Grows through Local Empowerment (Nov. 2023)

In 2025, Kodiak made a series of strategic decisions, including entering the appliances and interior market with a stand-alone business unit in July. In the Fall, Kodiak promoted a new Chief Operating Officer in Mike Flood, and created a Senior Vice President of Channel Strategy role to shape how the company partners with suppliers, vendors and customers.

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The integration of Kodiak’s structural and exterior construction products offerings signals toward a strategic vision to “become a preferred supplier serving the full project life cycle of large, multisite developments and master-planned communities.”

In its press release, Jacobs shared more to come: “Our acquisition pipeline remains very active, and we have plenty of dry powder from our recently announced equity financings led by Apollo and Temasek.”

A person familiar with the deal confirmed with MDM the company has cash on hand and the capacity for more deals in 2026.