The Greenwich, Connecticut-headquartered building products distributor QXO Inc. (NYSE: QXO) has made an unsolicited $5 billion all-cash acquisition proposal to GMS Inc. (NYSE: GMS), a specialty distributor of interior construction products.
“Our all-cash proposal to acquire GMS for $95.20 per share delivers immediate and certain value to GMS shareholders at a meaningful premium,” said Brad Jacobs, chairman and CEO of QXO. “We believe this is a compelling opportunity for GMS investors to realize the full value of their shares in a single, decisive transaction.”
In a letter to GMS President and CEO John Turner, QXO Chief Financial Officer Ihsan Essaid claimed GMS’ financial performance “has been underwhelming,” adding that its “outlook has deteriorated materially.” GMS operates more than 300 distribution centers across North America that supplies the building trades with wallboard, ceiling tiles, steel framing and related products.
“We strongly believe that our offer is in GMS’s and its shareholders’ best interests, and we also believe that your employees, vendors and customers will benefit from the significant growth opportunity provided by QXO’s platform,” said Essaid, who gave GMS a June 24 deadline to respond directly to his offer. “If you choose not to engage with us, or choose to engage in an unconstructive manner, we are prepared to take our offer directly to GMS’s shareholders who we’re confident will find the offer attractive.”
GMS issued a statement confirming the receipt of QXO’s offer, adding it did not to comment publicly until the board of directors completed a review of the proposal.
