Brad Jacobs will step down from his roles as chairman of XPO and GXO Logistics, effective Dec. 31, in order to free up more time to focus on QXO and Jacobs Private Equity.
Jacobs will serve as senior advisor to XPO through June 30, 2026.
“By transitioning out of my board positions at XPO and GXO, I can dedicate even more energy to QXO and Jacobs Private Equity,” Jacobs said in a news release. “We intend to grow QXO into a $50 billion revenue leader in building products distribution through accretive acquisitions and organic growth. XPO and GXO are in excellent shape and their prospects are very bright.”
GXO is a global contract logistics company that manages outsourced supply chains and warehousing while XPO is a transportation company focused on less-than-truckload (LTL) shipping in North America. Jacobs had previously relinquished his role as chairman of XPO spinoff RXO last year.
Jacobs founded tech-forward building products sector company QXO in 2023. The company secured financing and appointed its leadership team throughout 2024 and listed on the New York Stock Exchange in January. The company staked its claim as a leader in roofing, waterproofing, and complementary building products with its $11 billion acquisition of Beacon Roofing Supply in March.
“Acquiring Beacon is a key milestone in our plan to create substantial shareholder value and establish QXO as a leader in the $800 billion building products distribution industry,” Jacobs said at the time of the deal. “We will apply our proven playbook to a platform ripe to deliver above-market organic growth and significant margin expansion.”
Todd Tomalak, principal, advisory of building products for Zonda, noted the QXO-Beacon deal was reflective of channel shifts already occurring within the building products sector,
“Ahead of this announcement, our research revealed channel shifts were already occurring among builders and pro contractors, and adding QXO to the mix may accelerate this process further. We think this is much larger than roofing in future years,” Tomalak said following the QXO-Beacon merger.
QXO’s acquisition of Beacon was the latest in a series of billion dollar deals helping reshape the building products sector. Home Depot acquired roofing, landscape, and pool supply-focused SRS Distribution for $18.25 billion in March 2024 and outbid QXO to acquire specialty building products distributor Gypsum Management & Supply for $5.5 billion in June. Lowe’s acquired Foundation Building Materials, a building products company with a focus on drywall, metal framing, and ceiling systems, for $8.8 billion in August after previously acquiring Artisan Design Group in a $1.33 billion dollar deal in April.
QXO is targeting $50 billion in annual revenues within the next decade through accretive acquisitions and organic growth. In the company’s third quarter, ended September 30, QXO generated net sales of $2.73 billion and adjusted profit of $166.2 million, or $0.14 per share.
