By Liz Moyer

Building products distributor QXO said it would acquire insulation firm TopBuild Corp. for $17 billion.

QXO said in a statement on Sunday that the move would significantly expand its scale and capabilities across the building products value chain.

It expects the transaction to add to earnings immediately.

TopBuild is the largest distributor and installer of insulation and related building products in North America, the press release said. QXO leads in roofing, waterproofing, lumber-related building materials, and associated products.

The transaction values each TopBuild share at $505, representing a premium of 23% to TopBuild's closing price on Friday.

TopBuild stockholders will have the right to elect to receive $505 in cash or 20.2 shares of QXO common stock for each TopBuild share held, subject to proration, on the condition that the total transaction consideration is paid as approximately 45% in cash and 55% in shares of QXO common stock. The maximum cash proceeds will be capped in aggregate at 45% of the transaction consideration.

The transaction has been unanimously approved by the boards of directors of both companies but it subject to shareholder approval. The deal is expected to close in the third quarter.

QXO said it just completed a deal for Kodiak Building Partners, one of the top distributors of lumber, trusses, and other building materials, for approximately $2.25 billion.

The company said that after the TopBuild transaction, QXO will operate in an addressable market of more than $300 billion.

Brad Jacobs, CEO of QXO, said they've spent $13 billion on acquisitions in the past 11 months. "TopBuild will be our most significant acquisition yet, making QXO the second largest publicly traded building products distributor in North America, with more than $18 billion of combined company revenue and more than $2 billion" of combined adjusted earnings before taxes, interest, depreciation, and amortization.

Following the acquisition of TopBuild, QXO will have approximately 28,000 employees, 1,150 locations in all U.S. states and seven Canadian provinces, and a fleet size of more than 10,000 vehicles.

This is breaking news. Check back here for more details.

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

April 19, 2026 15:31 ET (19:31 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.