Company Overview - QXO, a building products distributor, reached a new 52-week high this week, with shares increasing by 23% following the announcement of a $1.2 billion investment deal led by Apollo Global [1][5] - Founded by entrepreneur Brad Jacobs in late 2023, QXO aims to consolidate the fragmented building products distribution industry [3] Investment and Acquisition Strategy - The recent $1.2 billion investment involves the issuance of convertible preferred shares with a 4.75% annual dividend, intended to finance eligible acquisitions by July 15, 2026 [5] - QXO's first significant acquisition was Beacon Roofing Supply, valued at approximately $11 billion, and the company aims to grow sales to $50 billion within the next decade [4][9] - Industry insiders speculate that QXO is in advanced talks with seven potential acquisition targets, indicating a proactive approach to further consolidation [6][7] Financial Goals - QXO's target outcome for acquisitions is to approximately double EBITDA within three to five years through integration, technology upgrades, and disciplined cost management [7]
Why Did QXO Stock Hit a 52-Week High This Week?