Apollo Global Management has committed $1.2 billion to QXO, Inc., a Greenwich‑based distributor of roofing, waterproofing and other building products. The capital is being raised through a new series of convertible perpetual preferred stock, giving Apollo a significant equity stake while providing QXO with the liquidity it needs to pursue future acquisitions.
QXO, led by serial entrepreneur Brad Jacobs, has built its business on a combination of scale and technology. Jacobs, who previously grew United Rentals, XPO Logistics and RXO, acquired Beacon Roofing Supply for $11 billion in 2023 and has since positioned QXO as a tech‑enabled platform for the fragmented building‑products market. The new investment will help the company accelerate that consolidation strategy and expand its digital operating system for distributors.
The preferred shares carry a 4.75% annual dividend and can be converted into common stock at $23.25 per share, a premium to QXO’s recent trading price. This structure gives Apollo a fixed income stream while preserving upside potential if QXO’s valuation rises as it executes its acquisition plan. The infusion also signals confidence in Jacobs’ ability to scale a high‑growth, high‑margin business in a market that is still largely analog.
The announcement was met with a positive market reaction, as investors and analysts noted the sizable capital injection and the premium conversion price. The move underscores Apollo’s focus on sectors with consolidation opportunities and reinforces confidence in QXO’s growth trajectory.
With the new capital, QXO aims to reach $50 billion in annual revenue within a decade, leveraging technology to create a modern operating system for building‑materials distribution. Apollo’s investment not only provides the financial flexibility needed for aggressive M&A but also aligns with its broader strategy of deploying capital into high‑growth, consolidation‑prone industries. The partnership positions QXO to accelerate its expansion and solidify its leadership in the building‑products sector.
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