Channel Insights on the QXO Acquisition of Kodiak Building Partners

QXO announced it has acquired Kodiak Building Partners, the consolidator of lumberyards and specialty distributors, for $2.25 billion.

The purchase price comprises $2 billion of cash and 13.2 million shares, with QXO retaining the right to repurchase shares at $40 per share. The transaction is expected to close early in the second quarter of 2026, subject to the satisfaction of customary closing conditions.

Dave Ables, who owns Tri-County Lumber in Clearwater, Minnesota, and 3 Sons Hardware in Big Lake, Minnesota, says the acquisition is one of many for Jacobs. Ables says as QXO integrates Kodiak with Beacon, facility consolidations and restructuring are inevitable, particularly in markets where the companies have overlapping branches.

“Private equity–funded businesses run lean,” he says. “There is no need for multiple facilities within the same proximity.”

While this acquisition could close some opportunities, Ables says he sees other opportunities amid the transition. He says independent retailers should seize the moment by showcasing the personalized service and stability that larger private-equity-backed companies lack.

“The time is right to show those folks, those real people, the independent yards are here to stay and we will provide them with consistency, market competitive prices, a family atmosphere, the same names and faces day after day and the same name on our buildings year after year,” he says.

Craig Webb, president of Webb Analytics, provided insight on the acquisition and the expected impact of merger and acquisition activity in 2026.

“QXO is about an $11 billion company now, and QXO’s Brad Jacobs has about that much money ready to buy more businesses en route to his goal of becoming a $50 billion behemoth by 2030,” Webb says. “Elsewhere, the M&A picture is likely to be affected most by when and how fast the Fed eases its rates and the cost of borrowing goes down as a result.”