QXO Finalizes $17B Purchase of TopBuild

QXO, Inc. has finalized its previously disclosed acquisition of TopBuild Corp. The $17 billion transaction, per QXO, gives it "leadership positions in key building product categories in North America." By QXO's math, the deal makes it:

• No. 1 in insulation.
• No. 2 in roofing.
• No. 1 in waterproofing.
• No. 1 or No. 2 in the lumber and building materials sector (in key geographies served).

The company also announced that Alec Covington, TopBuild’s former chairman, joined QXO’s Board of Directors, effective immediately. Covington replaces Jared Kushner, who resigned from the Board of Directors "to focus on other commitments."

Speaking on the deal, QXO Chairman and CEO Brad Jacobs said: 

“By acquiring TopBuild, we’re broadening our product offering, adding installation capabilities, and expanding our exposure to fast-growing end markets like data centers. By 2030, we expect to generate at least $300 million in annual synergies largely from procurement, pricing, and cross-selling, while applying TopBuild’s operational excellence across QXO. The transaction is expected to be highly accretive to earnings and advance our plan to build a world-class company with $50 billion in revenue. I’m grateful to Jared for his significant contributions to the company, and I’m pleased to welcome Alec to the Board.”

Under the terms of the merger agreement, former TopBuild shareholders will receive shares of QXO’s common stock or a combination of both cash and shares of QXO's common stock based on their elections and subject to proration and the other terms and conditions in the merger agreement.

TopBuild's shares will stop trading on the New York Stock Exchange.

Advisors

Morgan Stanley & Co. LLC acted as lead financial advisor to QXO, and Barclays and Wells Fargo Securities acted as additional financial advisors to QXO. Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal counsel to QXO.