Brad Jacobs Commits $1 Billion to Second Platform as QXO Sales Jump 79%

Brad Jacobs has agreed to invest $1 billion in CKX Lands Inc., a publicly traded Louisiana land company, to create his second acquisition platform while QXO — the building products distributor he chairs — reported preliminary third-quarter sales of roughly $4.9 billion, up 79% from $2.73 billion a year earlier.

Jacobs Private Equity II and a group of investors announced the CKX transaction Nov. 9. Jacobs Private Equity II will contribute $900 million, while minority investors led by HRTG Partners (formerly Sequoia Heritage) will add $100 million. Jacobs will become chairman and CEO of CKX when the deal closes, while keeping both titles at QXO. The two companies will operate independently.

"I love building multibillion-dollar market leaders, and this $1 billion investment marks the launch of my ninth company," Jacobs said in the announcement. "After concluding my chairmanships of XPO, GXO, and RXO last year, I now have the capacity to create this new venture while continuing to lead QXO to its massive potential."

Neither Jacobs nor CKX has identified the industry the new platform will pursue, disclosed targets, or set a timetable for a first acquisition.

How much of QXO's growth is bought, not organic?

The quarter's $2.17 billion revenue increase reflects acquisition activity rather than growth from existing businesses. The results include Kodiak Building Partners from April 1 and TopBuild from July 1; neither contributed to the year-ago quarter. The preliminary figures show scale, but they don't establish same-store sales growth (revenue at businesses already owned).

The bottom line remains negative. QXO reported a preliminary net loss of about $123 million, narrowed by $16 million, or 11.5%, from a $139 million loss in the third quarter of 2025. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, excluding items such as acquisition and restructuring costs) came in at approximately $557 million, up 85% from $301 million.

Integration is expensive. Transaction costs reached about $40 million in the quarter, versus $4 million a year earlier. Business transformation costs — technology infrastructure, artificial intelligence, rebranding, integration — totaled about $28 million, up from $23 million. QXO releases complete, audited results Nov. 12; preliminary figures may change.

What does the deal structure reveal?

The CKX transaction follows Jacobs' familiar playbook: acquire control of an existing listed company and convert it into an expansion vehicle. Key terms:

• Jacobs and his partners will own approximately 99.78% of common stock on a fully converted or exchanged basis, before warrants.
• CKX will undergo a corporate reorganization, convert from a Louisiana to a Delaware corporation, execute a reverse stock split, and issue preferred shares and warrants.
• Existing CKX shareholders receive a cash distribution of about $20.8 million, or $10.1312 per share, shortly before closing.
• The board approved unanimously; holders of about 28% of voting power have agreed to support the deal.
• Closing is expected in early 2027, subject to shareholder approval.

Why does this matter for building products distributors?

The near-term competitive pressure sits at QXO, which now spans far beyond roofing. Beacon Roofing Supply established its roofing position; Kodiak added lumber and building materials; TopBuild brought insulation distribution and installation. QXO now describes itself as:

• North America's largest distributor and installer of insulation
• Second-largest distributor of roofing products
• Second-largest publicly traded distributor of lumber and building materials
• Largest distributor of waterproofing products

The company sizes its addressable market at $800 billion and targets $50 billion in annual revenue within the decade — a figure that implies substantial further M&A, intensifying competition for privately held distributors seeking buyers in roofing, insulation and lumber.

Scale also changes channel economics. A broader portfolio lets QXO coordinate purchasing, transportation and inventory across a national network and capture contractors who otherwise buy across multiple suppliers. Suppliers gain market access but face concentrated purchasing power in fewer large distributors.

Can the strategy be measured yet?

Not fully. QXO has named AI and technology modernization as strategic priorities, with potential applications in inventory management, pricing, purchasing and customer ordering. But the preliminary announcement didn't quantify any sales gains, cost savings or productivity improvements attributable to those investments. The Beacon–Kodiak–TopBuild integration is the real test of whether size converts into sustained margin and operating improvement.

Jacobs' track record spans roughly 500 completed mergers and acquisitions across United Waste Systems, United Rentals, XPO, GXO Logistics and RXO — typically entering fragmented industries and scaling through technology and centralized management. He stepped down as chairman of XPO, GXO and RXO in 2025.

The Nov. 12 results should clarify organic performance, integration costs and acquisition pipeline at QXO — while the industry waits to learn what CKX's $1 billion will buy.