QXO to buy insulation company TopBuild in $17bn deal
Source · Mergers & Acquisitions desk
— Summary
Brad Jacobs' QXO has struck a $17bn cash-and-stock deal to buy US insulation distributor TopBuild, valuing TopBuild at $505 per share — a 23 per cent premium to its Friday close. Forty-five per cent of the consideration is cash, the rest stock. The combined group will have more than $18bn in annual revenue and become the second-largest publicly traded building products distributor in North America, pairing TopBuild's dominant insulation franchise with QXO's strength in roofing and waterproofing.
The deal is Jacobs' latest bolt-on in a fast-moving roll-up. He created QXO in late 2023 with the explicit goal of building a $50bn giant in the fragmented building products sector, repeating the playbook that built United Rentals and XPO Logistics. In 2025 QXO bought Beacon Roofing Supply for $11bn, and earlier this year Kodiak for $2.25bn. Earlier in 2026 QXO raised $3.75bn of fresh equity — investors included Apollo, Singapore's Temasek and Affinity Partners, the private equity firm founded by Jared Kushner — to fund further deals. Jacobs says the TopBuild fit adds scale and exposure to large, complex projects "like data centres".
Jacobs' activity is accelerating consolidation in US building products. Home Depot bought GMS for $5.5bn last summer and SRS Distribution for $18.25bn in 2024. Source: Financial Times, 19 April 2026, Oliver Barnes and Julia Rock.
The story in one line. Billionaire Brad Jacobs’ QXO has agreed to buy US insulation distributor TopBuild for $17bn, continuing his roll-up drive to create a $50bn giant in North American building products.
Key numbers
Deal size: $17bn (cash-and-stock); $505 per share, a 23% premium to TopBuild’s Friday close.
Mix: 45% cash, 55% stock.
Combined revenue: more than $18bn a year; creates the second-largest publicly traded building products distributor in North America.
QXO M&A to date: Beacon Roofing Supply ($11bn, 2025), Kodiak ($2.25bn, early 2026), TopBuild ($17bn, April 2026).
Jacobs’ stated target: a $50bn building products giant (QXO founded late 2023).
Equity raise earlier in 2026: $3.75bn — investors include Apollo, Temasek (Singapore) and Affinity Partners (Jared Kushner).
Sector comp: Home Depot bought GMS for $5.5bn (summer 2025) and SRS Distribution for $18.25bn (2024).
Why it matters
Jacobs’ playbook is the same one that built United Rentals (equipment rental) and XPO Logistics (last-mile delivery): roll up a fragmented sector, centralise procurement and logistics, arbitrage multiple expansion as scale grows. Building products — roofing, insulation, waterproofing — is the current target because the supplier base is fragmented and the end-demand tailwind includes two big structural drivers: US data-centre buildout and residential insulation retrofit.
TopBuild plugs a specific hole: QXO already has roofing and waterproofing from Beacon; TopBuild adds insulation. With Apollo and Temasek as funding partners, QXO has both balance-sheet firepower and a premium acquisition currency. The 23% premium is within the normal range for strategic cash-and-stock deals and signals TopBuild shareholders are being paid for the synergy expectations, not just standalone value.
Takeaway
Consolidation is now the dominant story in US building products: QXO, Home Depot (GMS, SRS) and the wider space are absorbing independents at $2–18bn clips. Expect more bolt-ons from QXO as Jacobs closes the gap to his $50bn ambition; expect smaller independent distributors to start pricing in take-out premia.
Source: Financial Times, 19 April 2026, Oliver Barnes and Julia Rock.