Jacobs Private Equity II and minority co-investors have agreed to invest $1 billion in CKX Lands, Inc., a publicly traded Louisiana land company that will become the platform for the new venture. Upon closing, Jacobs will become chairman and CEO of CKX while remaining chairman and CEO of QXO. The investment will launch what Jacobs calls his ninth company. What industry it will target has not yet been determined.

Investors initially appeared receptive to the news and QXO's accompanying business update. QXO shares were trading at $13.06 at 9:47 a.m. Eastern on Monday, up $1.49, or 12.93%, for the day.

During a Nov. 9 investor call, Jacobs was asked how he would balance building another company while QXO remains in the early stages of its transformation.

“I am 100% fully committed to QXO,” Jacobs said. “I own about a quarter of the company. Pretty much all my friends and family are in the stock. My interests are firmly aligned with shareholders, and QXO's in great shape.”

Jacobs said concluding his chairmanships of XPO, GXO and RXO last year “gave me the capacity to create this new venture, while continuing to lead QXO to its massive potential.”

He also pointed to his experience managing multiple businesses simultaneously, including XPO, which encompassed several major transportation and logistics operations. “Doing lots of things at the same time is not a new thing to me,” Jacobs said.

Asked why he was launching another company now, Jacobs pointed back to QXO's position.

“QXO has a lot of momentum,” he said. “QXO has gotten a lot done in a short period of time, and QXO is very well positioned for when the market turns.”

Roofing Sales Accelerate

Jacobs also used the call to highlight QXO's progress following its acquisitions of Beacon, Kodiak Building Partners and TopBuild.

“In North America, we're now the number one distributor of insulation products, number one in waterproofing, number two in roofing, and number one or number two in lumber and building materials in key regions,” Jacobs said.

QXO has approximately 28,000 employees serving 194,000 customers through 1,150 branches across all 50 states and seven Canadian provinces.

Despite what Jacobs described as a weak external market, QXO's roofing business has gained momentum. Roofing pricing improved from a 1.1% year-over-year decline in April to a 4.1% increase in September. In October, daily roofing sales increased 9.1% year over year, compared with a 5.4% increase companywide. QXO also reported that higher-margin complementary product sales in roofing and waterproofing rose 4.2% to $607 million in the third quarter, including 16% growth in gutters and accessories, 15% in fiber cement, and 7% in windows. Private-label penetration reached a record 10.6% of roofing and waterproofing sales.

The company also reported improvements in product availability and service. Out-of-stocks among key products improved by more than 25%, while on-time delivery in roofing and waterproofing improved by 650 basis points during the third quarter. Face-to-face customer meetings increased 57% from July to early November.

QXO Still Looking to Grow

The launch of Jacobs' new company does not appear to change QXO's plans for additional acquisitions.

QXO is targeting approximately $4 billion in adjusted EBITDA by 2030 before additional acquisitions. Jacobs said acquisitions funded through internally generated cash flow could contribute up to another $1.5 billion, potentially bringing the adjusted EBITDA opportunity to approximately $5.5 billion by 2030. The company has more than $2 billion in available liquidity and no debt maturities before 2031.

“We have substantial flexibility to invest in organic growth and pursue accretive acquisitions,” Jacobs said.

Jacobs also suggested QXO's current performance is coming without much help from broader market conditions.

“We're doing well, even in a tough environment,” Jacobs said, adding that an eventual market recovery would provide QXO with additional support.

Searching for Company No. 9

Jacobs said he has only begun evaluating industries for his new venture. He is looking for a large, scalable and fragmented market with organic growth potential and durability against disruption from AI, robotics and other technologies. The new company could pursue an acquisition-driven roll-up strategy similar to Jacobs' previous ventures, although he said the approach will depend on the industry ultimately selected.

“The journey begins today, and we're in no hurry,” Jacobs said, adding that he wants to identify the right industry rather than rush into the wrong one.

The CKX investment is expected to close in early 2027, subject to shareholder approval and other customary closing conditions. Once completed, CKX will be renamed and operate as a standalone public company.