With the acquisition of Kodiak as its latest deal, QXO is building on its plan to consolidate the highly fragmented building products industry.
Kodiak is being acquired for $2 billion in cash and 13.2 million QXO shares. When the deal was announced, the total size of the transaction was estimated by QXO to be $2.25 billion. But with the increase in the stock price since the deal went public, the equity value of the deal could be closer to $2.35 billion.
A QXO spokesman described Kodiak as a “national distributor of essential building products, including lumber, trusses, windows and doors, construction supplies, waterproofing and roofing, operating 110 locations across 26 states with about 5,500 employees serving more than 10,000 customers.”
Private equity firm Court Square Capital Partners is selling Kodiak to QXO. The deal is expected to close in the second quarter.
The company’s strategy has been said to focus on the concept that “the building supply industry was highly fragmented and a ripe candidate for a rollup. At the heart of the business plan is that a successful rollup could occur not just on size alone, but on the more efficient logistics that would come from that.”
