QXO Won’t Raise Its Offer for GMS After ϳԹ Depot Bid
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QXO Inc. won’t raise its $5 billion offer for building products distributor GMS Inc. after ϳԹ Depot Inc. reportedly made its own bid.
A spokesman for QXO said June 20 that $5 billion is the company’s full offer. The Wall Street Journal reported June 19 that ϳԹ Depot had submitted a bid for an undetermined sum. Representatives for ϳԹ Depot and GMS declined to comment.
ϳԹ Depot ranks No. 50 on theTransport Topics Top 100 list of the largest private companiesin North America.
QXO is a building products company run by veteran dealmaker Brad Jacobs, who is executive chairman of XPO and non-executive chairman of RXO and GXO Logistics.
READ MORE:QXO to Acquire Beacon Roofing Supply in $11 Billion Deal
QXO’s unsolicited offer of $95.20 a share represented a 27% premium to GMS’ 60-day volume-weighted average, according to a statement June 18. GMS shares jumped as much as 30% in June 20 trading, touching a high of $105.14, suggesting investors expect the winning bid to be higher.
Jacobs
“QXO has a history of ‘one and done’ offers for companies while HD, in our view, may be willing to pay a higher multiple,” Keith Hughes, an analyst at Truist Securities, wrote in a research note. Truist doesn’t expect any other bidders aside from QXO and ϳԹ Depot.
ϳԹ Depot’s reported interest in GMS aligns with the retailer’s goal of expanding its market share with professional contractors, Bloomberg Intelligence analyst Drew Reading said.
Shares of QXO rose as much as 6% on June 20. ϳԹ Depot shares gained 0.8% at 11:18 a.m. in New York.
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