QXO Inc. (NYSE: QXO), the Greenwich, Connecticut-headquartered building products distributor, has received a $1.2 billion investment from Apollo Global Management Inc. (NYSE: APO) through a new series of convertible perpetual preferred stock.
QXO stated that investment will fund at least one acquisition through July 15. The investment is structured as convertible perpetual preferred stock, which will offer immediate liquidity while providing long-term institutional backing.
Last year, QXO acquired Beacon Roofing Supply Inc. for $11 billion. The company sought to acquire GMS Inc., but was outbid by Home Depot (NYSE: HD).
Update: A person familiar with the investment told Weekly Real Estate news that QXO is in “advanced stages” of completing another significant acquisition and is in “serious” discussions with seven companies at “attractive valuations.” The potential deals are a mix of “mid-sized” deals for companies with between $1 billion and $5 billion in revenue, and deals QXO considers “transformational,” companies with revenue between $5 billion and $20 billion. This source added that “a weaker macroeconomic environment is increasing the number of attractive M&A opportunities at attractive valuations.”
