QXO Stock: Apollo Global Commits $1.2 Billion Investment for Building Products Company

TLDR

• QXO secures $1.2 billion investment from Apollo Global Management and partners including Franklin Templeton
• Convertible preferred stock priced at $23.25 per share, an 18% premium over Friday’s close
• Investment includes 4.75% annual dividend with mandatory acquisition deadline of July 15, 2026
• Stock climbed over 18% on Monday following the announcement
• Deal supports Brad Jacobs’ plan to build a $50 billion revenue company through acquisitions

QXO stock surged over 18% Monday after announcing a $1.2 billion investment from Apollo Global Management. The deal provides capital for the building products distributor’s acquisition strategy.

QXO, Inc., QXO

Apollo is leading an investment group that includes Franklin Templeton. The group is purchasing convertible preferred shares priced at $23.25 each. That represents an 18% premium to Friday’s closing price.

The preferred shares pay a 4.75% annual dividend. They can convert to common stock at the preset price if QXO performs well.

But the deal comes with a deadline. QXO must use the funds for qualifying acquisitions by July 15, 2026. This requirement forces management to execute quickly on expansion plans.

Brad Jacobs’ Acquisition Strategy

QXO founder Brad Jacobs aims to build the largest publicly traded building products distributor in North America. He’s targeting $50 billion in annual revenues within the next decade.

Jacobs co-founded United Rentals and has taken multiple companies public. His track record attracted Apollo’s interest in the deal.

The company already completed one major acquisition. QXO bought Beacon Roofing Supply for approximately $11 billion last April.

The building products distribution industry represents an $800 billion market. Jacobs sees consolidation opportunities across the fragmented sector.

QXO stock hit $23.30 during Monday’s trading session. The company’s market cap reached roughly $16 billion following the price increase. Trading volume exceeded normal levels as investors responded to the news.

Investment Terms and Structure

The convertible preferred structure benefits both parties. Apollo receives steady dividend income while maintaining conversion rights if the stock appreciates.

The 18% premium on the conversion price shows investor confidence in QXO’s future performance. Apollo wouldn’t agree to those terms without expecting stock growth.

Sources familiar with the matter confirmed the investment details Monday. The persons requested anonymity due to private aspects of the transaction.

QXO operates from Greenwich, Connecticut. The company now has approximately six months to identify and close qualifying acquisitions under the investment terms.

Wall Street responded positively to both the capital injection and the deadline requirement. The mandatory acquisition timeline ensures QXO continues pursuing growth rather than sitting on cash.

Franklin Templeton’s participation adds credibility to the deal. Multiple institutional investors backing the same strategy signals confidence in management’s execution ability.

The $1.2 billion ranks among the larger capital commitments in the building products sector this year. Apollo continues targeting companies with strong acquisition strategies and experienced leadership teams.

QXO stock settled near its session highs as markets closed Monday. The July 15, 2026 deadline now serves as the next key milestone for investors monitoring the company’s progress on acquisitions.

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