Brad Jacobs’ building materials roll-up continues with $2.25B Kodiak Building Partners purchase

“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. Our acquisition pipeline remains very active, with plenty of dry powder from our recently announced equity financings led by Apollo and Temasek.”

“I’m going to build a large building products distributor… I’ve started seven companies that all became billion or multi-billion dollar companies… I want the advantage of size, economies of scale. I want to be able to lower costs.”

“There are $20 and $30 billion dollar players already. Builders FirstSource, you got Ferguson. Great companies, real fine companies. But I’m planning to do something larger than that.”

“Primarily through acquisitions [is how I plan to build it]. If you look at my background, the teams I’ve led have done 500 acquisitions. M&A [mergers and acquisitions] is a tool in my tool kit I’ve used quite a bit. I think there’s a lot of room for creative M&A in the building products distribution space. The market is highly fragmented. You have 7,000 distributors here in North America, and almost twice that 13,000 in Europe. Most of them are private.”