QXO hopes to buy another leading building materials distributor just weeks after closing on its first major acquisition.
The company announced Wednesday that it sent a proposal to GMS to acquire the provider of wallboard, ceilings, steel framing and other construction products for $95.20 per share in cash — or “approximately $5 billion.”
QXO CFO Ihsan Essaid wrote in a letter to GMS’ chief executive, John Turner, that although GMS has “attractive” positions in its markets and an extensive distribution network, its financial performance has been “underwhelming.”
Essaid also suggested that changes in GMS’ recent stock trading patterns indicate “demonstrable takeover speculation” about the company.
QXO gave GMS management a Tuesday deadline to respond to the offer and noted that it is “prepared to take our offer directly to GMS’s shareholders.”
“We believe this is a compelling opportunity for GMS investors to realize the full value of their shares in a single, decisive transaction,” QXO CEO Brad Jacobs said in a statement.
QXO in late April closed its $11 billion acquisition of Beacon Roofing Supply after a protracted back-and-forth with company leaders. Following that deal, QXO says it is the nation’s largest publicly traded distributor of roofing, waterproofing and related building products. The company aims to reach $50 billion in annual revenues through acquisitions and organic growth within a decade.
GMS confirmed its receipt of the unsolicited takeover proposal and said that it would “carefully review and evaluate” the bid. The company does not intend to comment further until the end of the review process.
