Apollo-Led Group to Inject $1.2 Billion into Brad Jacobs' QXO for Building Products Roll-up

Brad Jacobs is making another massive bet on a fragmented industry. According to Reuters, an investor group led by Apollo Global Management has committed to investing $1.2 billion in QXO, a company focused on the building products distribution sector. This capital injection provides the necessary dry powder for QXO to execute its aggressive acquisition strategy.

Apollo QXO $1.2 billion investment and the Roll-up Strategy

The investment consists of a private placement of common stock. QXO intends to use these funds to consolidate the $800 billion building products distribution market. By acquiring smaller, localized players and integrating them into a tech-enabled national platform, QXO aims to achieve significant scale and operational efficiency.

The Jacobs Playbook: From XPO to QXO

Brad Jacobs, QXO's executive chairman, has a proven track record of creating value through consolidation. His previous ventures, including United Rentals and XPO, utilized similar M&A strategies to dominate their respective sectors. Apollo's partner, Antoine Munfakh, noted that they're excited to partner with Jacobs again, citing his ability to scale businesses rapidly.