Adds details on investment in paragraph 3, updates shares
By Anshuman Tripathy
Jan 12 (Reuters) - Billionaire Brad Jacobs' QXO QXO.N said it has secured an additional $1.8 billion in financing, led by Apollo Global Management APO.N and Singapore's Temasek, as the building products supplier pursues buyouts amid consolidation in the industry.
The latest funding, announced on Monday, takes the total investment in the Greenwich, Connecticut-based company to $3 billion, after it raised $1.2 billion last week. Its shares rose about 4% in morning trading.
Other investors included PGIM, the asset management business of Prudential Financial PRU.N, Morgan Stanley Investment Management and Iconiq, a source familiar with the investment matter told Reuters. QXO declined to comment.
The company said it structured the funding as a previously disclosed series of convertible perpetual preferred stock and plans to use the proceeds to support future acquisitions.
Mergers and acquisitions in the U.S. building-products industry has picked up pace as companies seek scale and localize supply chains to mitigate tariffs, with demand buoyed by new housing construction, repairs and renovations.
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 HD.N.
Peers have also struck large deals.
Last year, Commercial Metals CMC.N said it would acquire concrete supplier Foley Products for $1.84 billion, while roofing-material firm TopBuild BLD.N bought rival SPI for $1 billion in cash.
Jacobs, who has built multibillion-dollar companies in logistics, waste management and equipment rentals, positioned QXO to pursue more deals in the fragmented sector, targeting $50 billion in annual revenue within a decade.
He stepped down as chairman from XPO XPO.N and GXO Logistics GXO.N in December last year.
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Tasim Zahid and Shilpi Majumdar)
((Anshuman.Tripathy@thomsonreuters.com;))