QXO, led by Brad Jacobs, has acquired Kodiak from a private equity firm for $2 billion in cash and 13.2 million QXO shares. The deal is estimated to be worth $2.35 billion due to a rise in QXO stock price. Kodiak is a national distributor of building products with 110 locations and 5,500 employees.

The acquisition of Kodiak by QXO has been well-received by Wall Street, with QXO stock rising 16.61% after the announcement. Private equity firm Court Square Capital Partners is selling Kodiak to QXO, and the deal is expected to close in the second quarter. QXO’s core strategy is focused on logistics efficiency in the fragmented building products industry.

Analysts speculate that QXO’s next acquisition target will likely be a non-public company with residential housing exposure. The company still has about $6 billion for future acquisitions, positioning it for additional deals in the coming months. QXO aims to use logistics leverage to enhance its offerings and expand its market opportunity in the building products sector.

The acquisition of Kodiak is expected to triple QXO’s market opportunity and expand its total addressable market to over $200 billion. The deal will provide QXO with a more complete offering in exterior products and access to interior categories and services. QXO plans to leverage vendor overlap and logistics efficiency to drive success in the building products industry.

Read more at Yahoo Finance: a strategic $2 billion-plus leap in building products