QXO to buy Kodiak for $2.25 billion in cash-and-stock deal; shares rise

Feb 11 (Reuters) - Construction supplies distributor QXO QXO.N said on Wednesday it has agreed to buy Kodiak Building Partners from private equity firm Court Square Capital in a stock-and-cash deal valued at about $2.25 billion.

Shares of QXO were up about 5.2% at $24.4 in premarket trading, having risen 21.3% in 2025.

The deal includes $2 billion in cash and 13.2 million QXO shares, which the company has the option to repurchase at $40 per share, it said.

Dealmaking in the U.S. building-products sector has picked up as companies pursue greater scale and strengthen local supply chains to mitigate tariff risks, amid steady demand from repair and renovation, and non-residential projects.

Kodiak is a U.S. distributor of building materials, including lumber, trusses, windows and doors, roofing and waterproofing products, as well as other exterior construction supplies. It also provides value-added services such as assembly, fabrication and installation.

The company generated about $2.4 billion in revenue in 2025.

The addition of Kodiak's product portfolio is expected to help QXO win more business from large homebuilders, as the company pursues an acquisition-led strategy to build scale and compete with retail giants Home Depot HD.N and Lowe's LOW.N in building products distribution.

Reuters was the first to report the Kodiak acquisition earlier on Wednesday, citing two people with direct knowledge of the deal.

QXO said it expects the transaction to close early in the second quarter of 2026.

"We expect the integration to accelerate margin expansion," CEO Brad Jacobs said. "Our acquisition pipeline remains very active, with plenty of dry powder from our recently announced equity financings led by Apollo and Temasek."

QXO in January secured $1.8 billion in financing, led by Apollo Global Management APO.N and Singapore's Temasek, after raising $1.2 billion previously.