QXO is in advanced discussions to complete another major acquisition and is actively engaged with seven additional potential targets, a person familiar with the matter told Walls & Ceilings. The person requested anonymity because the discussions are private. The talks follow the company’s newly announced $1.2 billion investment led by Apollo Global Management affiliates.

Potential deals span mid-sized companies generating roughly $1 billion to $5 billion in annual revenue, as well as larger, “transformational” targets with $5 billion to $20 billion in revenue, the person said. A softer macroeconomic backdrop is expanding the pool of attractive assets and improving pricing, the person added.

QXO officials addressed the situation broadly in a brief response to WC. 

“Our target outcome for any acquisition is to approximately double EBITDA within three to five years through integration, technology upgrades and disciplined cost management,” a QXO spokesperson said.

The Apollo-led investment provides funding for one or more acquisitions through July 2026, with an option to extend the commitment for 12 months if a deal is signed before that deadline.

“With Beacon already under its belt, QXO now has the capital and credibility to be a serious roll-up player in a fragmented market where scale and being cutting-edge increasingly matters," said Lilli Tillman Smith, an industry analyst at Principia." The opportunity is real, but the next chapter will hinge on disciplined deal selection and clean integration, especially as competition for best-in-class assets continues to intensify.”

Analysts at William Blair said the structure and timing of the Apollo investment suggest a transaction could be near. Apollo has previously partnered with QXO CEO Brad Jacobs on past deals.

“We believe there are multiple deals in discussion ranging from small to large, but our sense is a large deal—EBITDA of $500 million-plus—is most likely,” a William Blair research note stated.

William Blair estimates QXO has $7 billion to $8 billion in capacity for acquisitions, with additional equity raises possible. Merkel said lumberyards appear to be the most likely next target, while also citing specialty distributors such as ADI Global, White Cap and Core & Main as possibilities. Builders FirstSource remains on the list but is viewed as less likely due to its size and operational complexity, he said.

QXO, the largest publicly traded distributor of roofing, waterproofing and complementary building products in the United States, has set a long-term goal of reaching $50 billion in annual revenue within the next decade.