Building materials distributor QXO announced Monday that investors have agreed to invest $1.2 billion in the business to fund additional acquisitions in the first half of this year.
The company said that funds managed by affiliates of Apollo Global Management and “certain other investors” will purchase a new series of convertible perpetual preferred QXO stock to fund “one or more” qualifying acquisitions through July 15. If an acquisition agreement is reached before that deadline, it can be extended up to an additional 12 months.
The convertible preferred stock will pay a preferred dividend rate of 4.75% per annum, and can be converted into shares of the company’s common stock at an initial conversion price of $23.25 per share, officials said.
QXO, established by billionaire former XPO and GXO Chairman Brad Jacobs, acquired Beacon for $11 billion last spring and indicated that it intended to make additional acquisitions. The company also made an offer for GMS last year; that distributor was eventually acquired by the Home Depot.
