The potential takeover of building materials distributor GMS could reportedly become the subject of a bidding war between a billionaire logistics entrepreneur and the world’s largest home improvement retailer.
QXO, the newly formed distributor led by former XPO head Brad Jacobs, on Wednesday announced a $5 billion bid to acquire GMS just weeks after finalizing its $11 billion buyout of Beacon Roofing Supply.
GMS, however, has also received an undisclosed buyout offer from the Home Depot, the Wall Street Journal reported Thursday.
QXO officials noted in their proposal that speculation about GMS becoming a buyout target had fueled increases in the prices of its stock in recent months. The company gave GMS executives until Tuesday to respond to the offer before it took the matter directly to its shareholders.
The Home Depot, meanwhile, made a blockbuster distribution acquisition of its own last year, adding SRS Distribution for more than $18 billion.
