- Brad Jacobs’ latest venture, QXO Inc., is acquiring Beacon Roofing Supply for $11B, marking his first major move in the building supply industry.
- Jacobs, known for scaling businesses like United Rentals and XPO, sees roofing supply as a fragmented, under-optimized sector ripe for consolidation and tech-driven transformation.
- The acquisition kicks off Jacobs’ long-term plan to build a logistics-style powerhouse in the building materials space, tapping into consistent demand and recurring revenue.
Brad Jacobs has made a career out of spotting under-the-radar sectors and scaling them into massive, tech-enabled businesses.
Per Bloomberg, he’s now turning his attention to building materials (specifically roofing) with his new company QXO Inc.
The firm recently announced its first blockbuster deal: the $11B acquisition of Beacon Roofing Supply, a leading distributor of roofing products and related materials across the US.
Why Roofing?
Jacobs told Odd Lots that the roofing supply business is “fragmented, essential, and not very tech-savvy”—all characteristics that echo the early days of his past ventures like XPO. He sees a clear path to value creation through operational efficiency, digital tools, and aggressive M&A.
Roofing is also a relatively recession-resilient segment of the construction market, given the need for ongoing repairs and replacements.
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Why Beacon?
Beacon is one of the largest players in the space, with a national footprint and strong vendor relationships. But Jacobs sees room for improvement.
His team reportedly spent months negotiating with Beacon’s leadership before closing the deal, signaling his deep interest in shaping the company’s future.
The Bigger Play
Jacobs doesn’t plan to stop at roofing. He views Beacon as the cornerstone of a broader platform in the $100B US building supply market.
By centralizing procurement, optimizing logistics, and integrating digital sales, Jacobs aims to build QXO into a dominant player—similar to how he built XPO into a global logistics leader.
What’s Next
With QXO still in its early days, more acquisitions are likely on the horizon. Jacobs is known for buying and scaling aggressively, and building materials appear to be his next long-term focus.
As for the economy, he remains cautiously optimistic, citing steady demand in housing repair and commercial construction.
Bottom Line
Brad Jacobs believes that what worked in logistics can work in roofing supply: digitize a fragmented industry, scale smartly, and execute relentlessly. If history is any guide, Beacon could be just the beginning.
