QXO to Buy Kodiak Building Partners for $2.25 Billion
- Craig Webb
- 41 minutes ago
- 2 min read
By Craig Webb
QXO announced Feb. 11 it will purchase Kodiak Building Partners from Court Square Capital Partners for about $2.25 billion. Kodiak generated about $2.4 billion in revenue and $211 million in EBITDA in 2025, putting the multiple at about 10.7x EBITDA and 0.95x sales.
The deal includes 110 locations across 26 states with roughly 5,500 employees serving more than 10,000 customers, a QXO spokesman said. It excludes Kodiak Interiors Group, which Kodiak Building Partners spun off in July 2025. The transaction is expected to close early in the second quarter.
Founded in 2011, Kodiak specializes in lumber, truss manufacturing, windows, and doors. It is not known as much for roofing, which has been QXO's specialty since it purchased Beacon Building Products in 2025. About 40% of its 2025 revenues were generated in Florida and Texas, a QXO spokesman said.
QXO's aim is to generate $50 billion in annual revenues within the next decade. Today's acquisition triples its total addressable market in construction products to $200 billion, QXO estimates.
The purchase price is $2 billion in cash plus 13.2 million QXO shares that QXO retains the right to buy back at $40 each. "When including synergies, the EBITDA multiple is ~7.3x, and the multiple is 6.8x based on Kodiak’s last five year average EBITDA of $330 million," a QXO spokesman said.
“The acquisition of Kodiak is highly complementary to our existing business," QXO Chairman and CEO Brad Jacobs said in a news release. "We’ll be able to deliver more value to customers across our combined base by cross-selling products and support services, and with a greater presence in key markets. And we expect the integration to accelerate margin expansion through scaled procurement, network optimization, AI-powered inventory management, and other tech-enabled operating efficiencies.
"Our acquisition pipeline remains very active, with plenty of dry powder from our recently announced equity financings led by Apollo Global Management and Temasek," Jacobs added. Prior to the deal, it was believed that QXO had amassed roughly $11 billion in funding it could use for acquisitions.
"QXO is the most exciting company in the industry," Steve Swinney, Co-Founder and CEO of Kodiak, said in the news release. "By joining forces, we’re moving from strength to strength to unlock new opportunities for our customers and employees. I want to thank our employees for building a high-quality business at Kodiak and for the value created over the past 15 years, including the last eight with Court Square. I look forward to an even more exciting future as part of QXO.”
Private equity companies like Court Square normally try to take profits from their investments after about five years. It is believed that Court Square has been trying to sell Kodiak for at least two years.
A QXO spokesman touted the cross-selling opportunities between Kodiak and the current QXO. Sixteen of Kodiak's top 20 vendors also sold to Beacon.
"EBITDA synergies are expected from early procurement, pricing, and operating wins," the spokesman added, "supporting a credible path to doubling legacy Kodiak EBITDA over several years through six controllable levers: scaled procurement, pricing and cross-sell, network optimization, organizational redesign, manufacturing efficiency, and technology enhancements. The three largest drivers of synergies are procurement scale, vendor leverage and technology."