Apollo Said to Invest in Brad Jacobs’ Distribution Firm QXO

Investment Overview - An investor group led by Apollo Global Management Inc. has agreed to invest over $1 billion in QXO Inc. to support its acquisition strategy [1] - The investment is also backed by firms including Franklin Templeton, with an announcement expected soon [2] Financial Details - The financing will be in convertible preferred stock, with an initial conversion price of $23.25 per share, approximately 18% above QXO's closing price of $19.72 [3] - QXO's shares increased by as much as 7.4% in premarket trading, and the stock has risen over 20% in the past year, giving it a market value of $13.3 billion [3] Acquisition Strategy - A significant condition for the financing is that QXO must acquire at least one company by mid-July [4] - QXO aims to consolidate the building products distribution industry and has already made a major acquisition of Beacon Roofing Supply Inc. for $11 billion [5][6] - Jacobs is in discussions with seven different targets, with revenues up to $20 billion [8] Company Background - QXO was created in 2023 by Brad Jacobs, who has a history of successful deal-making [5] - The company targets a wide range of products, including construction materials, plumbing supplies, and heating and cooling equipment [6] - Jacobs previously attempted to acquire GMS Inc. for $5 billion, which was sold to Home Depot Inc. [7]