TopBuild Corp Gets $17 Billion Buyout Offer From QXO at $505 Per Share
NEW YORK, April 20 —
QXO agreed to buy TopBuild Corp. (BLD) for roughly $17 billion at $505 per share, a 23% premium to BLD's last close of $410.31.
- Offer price: $505/share, valuing TopBuild at approximately $17bn on $5.4bn TTM revenue (roughly 3.1x sales)
- Premium: 23% above BLD's last close of $410.31, pricing the stock at 19.5x forward earnings before the pop
- Next catalyst: shareholder vote date and regulatory approval timeline, plus any competing bids
What Actually Happened
Brad Jacobs is running the same playbook he always runs. The serial acquirer behind XPO Logistics is using QXO to consolidate building products distribution. TopBuild is his biggest target yet. The deal would make QXO the second-largest building products distributor in the country. TopBuild installs and distributes insulation and other building products. It generated $5.4bn in trailing twelve-month revenue. At $505 per share, QXO is paying roughly 3.1x sales.
The formula hasn't changed: Jacobs buys fragmented industries, cuts costs, and scales. He did it in waste management, trucking, and logistics. Building products is next.
The Catch
This is a stock-and-cash deal, not all cash. That distinction matters. The $505 headline number depends on QXO's stock price at closing. If QXO shares fall between now and the shareholder vote, the actual payout per BLD share lands below $505. Halper Sadeh LLC is already investigating whether the price is fair to TopBuild shareholders. That's standard deal-chasing litigation, but it signals some investors think $505 undervalues the company.
Then there's antitrust. A $17bn deal in building products distribution will draw regulatory scrutiny, and the approval timeline remains unclear. BLD shares will likely trade below the offer price until shareholders vote and regulators sign off. That spread between the trading price and $505 is where the risk lives.
Bottom Line
If you owned BLD at $410, a 23% premium looks generous. But Jacobs has a history of buying good businesses at fair prices and extracting far more value over time. The question for shareholders: does $505 capture TopBuild's long-term earnings power in a housing market with a structural supply deficit? Watch for competing bids. If none surface, $505 is probably the ceiling. The number to track: the spread between BLD's trading price and $505. That gap tells you exactly how much the market trusts this deal to close as advertised.
TopBuild doesn't have a Basis Report yet. Generate a full BLD analysis here to see how the acquisition price stacks up against intrinsic value.
Basis Report does not hold positions in securities discussed. This is not investment advice.