QXO (NYSE:QXO) shares rose sharply in premarket trading on Monday after reports that an investor consortium led by Apollo Global Management has agreed to inject more than $1 billion into the building products group.
People familiar with the situation said the funding is intended to back QXO’s acquisition-led growth strategy. The Greenwich, Connecticut–based company has secured interest not only from Apollo but also from other institutional investors, including Franklin Templeton.
According to the sources, a formal announcement could be made as early as Monday, although the timing has not been finalized. Those who shared the information requested anonymity, as the discussions remain confidential.
The sizeable investment is seen as a strong endorsement of QXO’s expansion plans in the building materials sector. With fresh capital in place, the company is expected to accelerate strategic acquisitions aimed at broadening its footprint and strengthening its market position.
The deal comes amid continued appetite from private equity firms for industries offering consolidation opportunities. Apollo, one of the world’s largest alternative investment managers, has been particularly active in targeting businesses where scale can be built through acquisitions and long-term growth strategies.