Connecticut-based QXO Inc. has launched an unsolicited offer to acquire GMS Inc., a major building materials distributor, in a $5 billion all-cash proposal that sent shockwaves through the market. The bid, revealed in a letter dated Wednesday, offers $95.20 per share, representing a 27% premium over GMS’s 60-day volume-weighted average price of $74.82.
The market responded immediately. On Friday, the first trading day after QXO’s proposal became public, GMS stock surged nearly 24%, breaking through the $100-per-share mark, a strong indication of investor optimism or anticipation of a bidding war.
QXO Positions Bid as Immediate, Certain Value
In its public statement, QXO Chair and CEO Brad Jacobs called the offer a compelling and fully financed proposal that would deliver “immediate and certain value” to GMS shareholders.
“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 Jacobs.
QXO is backed by legal powerhouse Paul Weiss Rifkind Wharton & Garrison LLP, while Goldman Sachs and Morgan Stanley are serving as its financial advisers.
