GMS Urges Caution as Board Reviews Proposal
On Thursday, GMS confirmed receipt of the unsolicited takeover offer and stated its board of directors would carefully evaluate the proposal with help from independent legal and financial advisers. For now, the company has advised shareholders to take no action until a formal review is complete.
Alston & Bird LLP is representing GMS on the legal front, while Jefferies is acting as the company’s financial adviser.
QXO Criticizes GMS’s Financial Performance
In the proposal letter addressed to GMS President and CEO John Turner, QXO laid out a critical assessment of GMS’s recent financial performance. The letter stated that GMS has underperformed peers, with profits dropping approximately 4% annually over the past three years and earnings falling short in four of the last five quarters.
The letter highlighted troubling declines in revenue, EBITDA, earnings per share, and described what it called a “sharp decline in performance.”
Despite those concerns, QXO emphasized that the offer was generous, calling it “a full and compelling offer at the high end of our valuation range.”
