QXO (QXO) Climbs to 52-Week High on $2.25-Billion Kodiak Takeover
We recently published 10 Stocks Turning Heads With Double-Digit Returns. QXO Inc. (NYSE:QXO) was one of the best performers on Wednesday.
QXO climbed to a new 52-week high on Wednesday as investors supported plans to acquire Kodiak Building Partners for $2.25 billion.
At intra-day trading, the stock jumped to as high as $27.14 before paring gains to finish the session just up by 16.59 percent at $27.06 apiece.
In a statement on the same day, QXO Inc. (NYSE:QXO) said that it inked a definitive agreement to take over Kodiak, opening doors to a potential $200 billion addressable market.
Under the agreement, QXO Inc. (NYSE:QXO) would pay Kodiak worth $2 billion in cash and 13.2 million shares, with the former retaining the right to repurchase the equities at a price of $40 apiece.
The transaction is expected to close early in the second quarter of the year, subject to customary closing conditions.
According to QXO Inc. (NYSE:QXO), Kodiak generated $2.5 billion in revenues last year from the distribution of lumber, trusses, windows, doors, construction supplies, waterproofing, roofing, and complementary exterior products, as well as value-added assembly, fabrication, and installation services.
“The acquisition of Kodiak is highly complementary to our existing business. We’ll be able to deliver more value to customers across our combined base by cross-selling products and support services, and with a greater presence in key markets. And we expect the integration to accelerate margin expansion through scaled procurement, network optimization, AI-powered inventory management, and other tech-enabled operating efficiencies,” said Chairman and CEO Brad Jacobs.
“Our acquisition pipeline remains very active, with plenty of dry powder from our recently announced equity financings led by Apollo and Temasek,” he added.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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