QXO to buy insulator TopBuild in $17bn deal

Tuesday, April 21, 2026

Brad Jacobs’ company QXO will acquire insulation specialist TopBuild for about $17 billion in a mixed cash and stock deal, creating a combined firm with over $18 billion in annual revenue. This acquisition strengthens QXO’s position as a leading building products distributor in North America and accelerates its strategy to consolidate the fragmented industry.

Brad Jacobs’ newly formed company, QXO, has agreed to acquire insulation specialist TopBuild in a transaction valued at approximately $17 billion. The deal, announced Sunday, marks a significant step in Jacobs’ strategy to build a leading conglomerate in the fragmented North American building products sector.

The acquisition, a combination of cash and stock, values TopBuild at $505 per share, representing a 23 percent premium over its closing price on the previous Friday. QXO will fund about 45 percent of the purchase price with cash, with the remainder paid in equity. The transaction is expected to create a combined entity with annual revenues exceeding $18 billion, making QXO the second-largest publicly traded distributor of building products in North America.

TopBuild’s strong presence in insulation complements QXO’s existing portfolio, which includes significant holdings in roofing and waterproofing. These capabilities were strengthened by earlier acquisitions, including the $11 billion purchase of Beacon Roofing Supply in 2023 and the $2.25 billion acquisition of Kodiak earlier this year.

Jacobs launched QXO in late 2023 with the objective of consolidating various firms within the building products industry to reach a market capitalization of $50 billion. This approach mirrors the strategy he successfully employed with his prior ventures, equipment rental company United Rentals and last-mile delivery firm XPO Logistics.

“The TopBuild transaction will also give us critical mass in the insulation sector and expand our exposure to large, complex projects like data centres, where scale matters,” Jacobs said in a statement.

Earlier in 2024, QXO secured $3.75 billion in equity financing from investors including Apollo Global Management and Temasek Holdings, Singapore’s sovereign wealth fund. The company also previously raised capital from Affinity Partners, a private equity firm founded by Jared Kushner.

Jacobs' aggressive acquisition campaign mirrors a broader wave of consolidation within the building products distribution industry. Last summer, retail giant Home Depot acquired GMS, a building products distributor, for $5.5 billion, and in 2024, it completed the $18.25 billion purchase of SRS Distribution.

The deal between QXO and TopBuild is expected to further reshape the competitive landscape, intensifying efforts by major players to build scale and diversify their offerings in an evolving market.