Apollo invests USD1.2b into Brad Jacobs’ distribution company QXO
Make us a preferred source
Make us a preferred source on Google
The news: QXO said on Monday that funds managed by affiliates of Apollo Global Management and other investors have agreed to invest USD1.2 billion ($1.8 billion) into the building-products distributor to support acquisition opportunities.
The numbers: QXO said that the financing will be in convertible preferred stock, with the investors’ initial conversion price into common stock will be USD23.25 per share. The new stock will pay a preferred dividend rate of 4.75% per annum, QXO said.
Shares in QXO climbed as much as 7.4% in premarket US trading on Monday, before settling at USD19.72 (up 2.23%) as of 6:50am ET (10:50pm AEDT).
The context: Bloomberg reported that Franklin Templeton is among other firms backing the investment and that a significant condition to securing the financing being that QXO must acquire at least one company by mid-July.
Billionaire and dealmaker Brad Jacobs who helms QXO lead a hostile takeover attempt of rival GMS for USD5 billion in 2025, which was ultimately sold to Home Depot.
QXO successfully completed the purchase of Beacon Roofing Supply last year for USD11 billion, including debt.
