US-based QXO has signed a definitive agreement to acquire TopBuild in a deal valued at approximately $17bn.
Headquartered in Daytona Beach, Florida, TopBuild is one of the largest distributors and installers of insulation and related building products in North America.
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The company installs and distributes insulation and related products for residential, commercial and industrial markets. It also supplies gutters, fireproofing, mechanical insulation and roofing systems for large buildings.
The planned integration will bring QXO’s operations in roofing, waterproofing and lumber-focused building supplies together with TopBuild’s insulation distribution and installation activities.
QXO stated the move will result in increased margins and a broader range of offerings for customers.
The boards of both companies have approved the transaction, which is now pending shareholder and regulatory approval. QXO anticipates closing the deal in the third quarter of 2026.
“TopBuild will be our most significant acquisition yet, making QXO the second-largest publicly traded building products distributor in North America,” QXO chairman and CEO Brad Jacobs said.
Upon completion of the transaction, QXO is projected to operate across all 50 US states and seven Canadian provinces, encompassing about 1,150 locations and more than 28,000 employees.
The vehicle fleet is expected to exceed 10,000 units.
The agreement values TopBuild shares at $505 each, representing a 19.8% premium to the 60-day volume-weighted average price and 23.1% over TopBuild’s closing price on 17 April 2026.
TopBuild produced about $6.2bn in net sales and reported adjusted EBITDA of approximately $1.14bn for 2025, with adjustments for the full-year contribution of completed acquisitions.
QXO projects cost and revenue synergies of roughly $300m by 2030 by integrating TopBuild’s operations, focusing on areas like procurement, logistics, inventory management and technology initiatives.
TopBuild’s management anticipates annual revenue between $9bn and $10bn, and adjusted EBITDA ranging from $1.7bn to $2.0bn by 2030, through organic growth and further acquisitions within a $90bn addressable market.
Brad Jacobs said: “TopBuild has a deep bench of best-in-class operators, reflected in its industry-leading adjusted EBITDA margin of approximately 18%. We plan to replicate their best practices across QXO, including deploying their ‘special OPS’ teams to continuously improve operational excellence and customer service.”
The agreement with TopBuild follows QXO’s acquisition of Kodiak Building Partners, a building materials distributor, for approximately $2.25bn.
Morgan Stanley & Co. serves as lead financial advisor to QXO, alongside Barclays and Wells Fargo Securities, with legal advice from Paul, Weiss, Rifkind, Wharton & Garrison.
