April 19 (Reuters) - U.S. construction supplies distributor QXO said on Sunday it will acquire commercial roofing firm TopBuild for about $17 billion, adding to a wave of acquisitions by the company led by billionaire dealmaker Brad Jacobs.
As part of the deal, Connecticut-based QXO said Florida-based TopBuild's shareholders can elect to receive $505 in cash or 20.2 shares of QXO common stock for each TopBuild share held on the condition that the total transaction is paid as about 45% in cash and
55% in shares of QXO common stock.
The $505 cash consideration represents a premium of 23.1% over TopBuild's last close of $410.31 on Friday, Reuters calculations showed.
QXO said that the deal, which has been unanimously approved by the boards of both companies, is expected to be immediately and substantially accretive to its earnings.
QXO has market capitalization of around $18.08 billion, while TopBuild has a market capitalization of around $11.54 billion.
"Over the past 11 months, we've built QXO into a market leader through more than $13 billion of acquisitions, closing on Beacon in 2025 and Kodiak earlier this month. TopBuild will be our most significant acquisition yet." said Jacobs, the chairman and CEO of QXO.
Jacobs, who has built multibillion-dollar companies in logistics, waste management and equipment rentals, positioned QXO to pursue more deals.
QXO, a newcomer to the building products sector, completed an $11 billion acquisition of Beacon Roofing Supply last year. It also made a bid for GMS and threatened a hostile takeover, but ultimately lost out to home improvement chain Home Depot.
The deal for TopBuild, which is expected to close in the third quarter of 2026, adds to the uptick in mergers and acquisitions in the U.S. building-products industry as companies seek scale and localize supply chains to mitigate tariffs, with demand buoyed by new housing construction, repairs and renovations.
Following the deal, QXO said it will have around 28,000 employees, 1,150 locations across all 50 U.S. states and seven Canadian provinces, with a fleet size of more than 10,000 vehicles.
In February, QXO announced a $2.25 billion deal to buy U.S. distributor of building materials Kodiak Building Partners.
At the start of the year, QXO secured $1.8 billion in financing, led by Apollo Global Management and Singapore's Temasek, after raising $1.2 billion previously.
(Reporting by Mihika Sharma and Gursimran Kaur in Bengaluru; Editing by Will Dunham)
