Industrial distribution firm QXO, Inc. (NYSE:QXO) announced Sunday it will acquire TopBuild Corp. (NYSE:BLD) in a $17 billion deal.

The deal is a cash-and-stock transaction valued at $505 per share. The companies expect to close in the third quarter of 2026, subject to shareholder approval and customary conditions.

QXO shares were down in Monday’s premarket trading, while TopBuild shares rose.

Scale Deal Creates Industry Leader

QXO said the acquisition will position it as the second-largest publicly traded building products distributor in North America.

The combined company will have about $18 billion in revenue, over $2 billion in adjusted EBITDA, and an enterprise value of nearly $50 billion.

The combined company will hold leading positions across key categories, including No. 1 in insulation, No. 2 in roofing, and No. 1 in waterproofing, while expanding QXO’s total addressable market to more than $300 billion.

Financial Profile And Growth Drivers

TopBuild generated about $6.2 billion in revenue in 2025 and $1.14 billion in adjusted EBITDA, with margins near 18%. QXO said the transaction will be immediately and meaningfully accretive to its earnings.

The combined platform will be diversified across residential, commercial, and industrial markets, with a roughly 50/50 split between repair and remodel and new construction.

QXO is targeting approximately $300 million in synergies by 2030, driven by procurement, logistics, pricing, and technology initiatives. The deal implies a valuation of 14.9x 2025 adjusted EBITDA, or 11.8x including expected synergies.

Strategic Rationale And Expansion Focus

QXO CEO Brad Jacobs described the transaction as the company’s largest to date. He said it aims to strengthen QXO’s position in insulation and expand into high-growth areas like data centers.

He cited demand drivers, including housing undersupply, aging infrastructure, and energy-efficiency requirements.

“The TopBuild transaction will also give us critical mass in the insulation sector and expand our exposure to large, complex projects like data centers, where scale matters. TopBuild has a deep bench of best-in-class operators, reflected in its industry-leading adjusted EBITDA margin of approximately 18%,” commented Jacobs.

Operations And Long-Term Outlook

The combined company will operate approximately 1,150 locations with about 28,000 employees.

TopBuild will benefit from improved service levels, cross-selling opportunities, and operational efficiencies. The company has outlined long-term targets of $9 billion to $10 billion in revenue and $1.7 billion to $2 billion in adjusted EBITDA by 2030.

QXO held cash, cash equivalents, and restricted cash of $2.365 billion as of December 31, 2025.

Price Action: BLD shares are trading 17.63% higher at $482.66, and QXO is down 4.44% at $23.89 in the premarket session on Monday.

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