QXO, Inc. announced a $1.2 billion investment from Apollo Global Management affiliates, structured as a new series of convertible perpetual preferred stock. The capital infusion is intended to strengthen QXO’s balance sheet and provide the financial flexibility needed to pursue its aggressive roll‑up strategy in the building‑products distribution market.
The preferred shares carry a 4.75% annual dividend and a conversion price of $23.25 per share. The terms allow Apollo to convert the investment into common equity at a later date, aligning the investor’s interests with QXO’s long‑term growth while giving the company immediate liquidity for acquisitions.
QXO’s strategy is to reach $50 billion in revenue over the next decade, a target that has been reinforced by the recent $11 billion acquisition of Beacon Roofing Supply in April 2025. The Apollo investment provides a significant capital cushion that can be deployed through July 15, 2026, with a potential 12‑month extension, enabling the company to accelerate its consolidation of the fragmented $800 billion industry.
Brad Jacobs, founder and CEO, said the deal was “just the first step” toward building the largest tech‑enabled distributor in North America. He highlighted the company’s focus on digitizing operations, improving pricing power, and remediating $200 million in pricing leakage identified at Beacon Roofing Supply.
Investors welcomed the investment, noting Apollo’s prior successful collaboration with Jacobs at United Rentals and the confidence it signals in QXO’s business model. The capital boost is expected to accelerate the company’s acquisition pipeline and support its goal of scaling through technology and operational efficiencies.
The infusion strengthens QXO’s balance sheet, reduces leverage, and positions the company to capture market share in a highly fragmented industry. With Apollo’s backing, QXO can pursue additional acquisitions, invest in AI‑driven pricing and procurement platforms, and improve operating margins over the long term.
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