Greenwich-based QXO Inc., a distributor of roofing, waterproofing and other building products, said Monday it has secured a $1.2 billion equity investment led by funds managed by affiliates of Apollo Global Management to help finance future acquisitions.
The investment will be made through a new series of convertible perpetual preferred stock and is intended to fund one or more qualifying acquisitions through July 15, 2026. The commitment could be extended for up to an additional year if QXO signs a definitive acquisition agreement before that date.
The preferred shares will pay a 4.75% annual dividend and are convertible into QXO common stock at an initial conversion price of $23.25 per share.
QXO is led by Chairman and CEO Brad Jacobs, a veteran dealmaker known for building large, acquisition-driven companies. Jacobs previously founded and scaled logistics firms XPO and GXO Logistics and stepped back from board leadership roles at both companies late last year to focus on QXO and his investment firm.
The company has been pursuing growth primarily through acquisitions in the fragmented building-products distribution industry. Last year, QXO completed its $11 billion acquisition of Beacon Roofing Supply.
