QXO, Home Depot in Bidding War to Acquire GMS
A bidding war is under way for the potential acquisition of building products distributor Gypsum Management & Supply.
 |
Both QXO Inc. and Home Depot are seeking to gain a greater share of the construction supplies market, banking on the potential expansion expanding their respective reach to professional contractors.
Based in Tucker, Georgia, GMS operates network of subsidiary companies throughout the U.S. and Canada with more than 320 distribution centers and nearly 100 tool sales, rental and service centers.
QXO Inc. CEO Brad Jacobs submitted an a reportedly unsolicited proposal to the GMS board on June 18. The offer was made at a price of $5 billion, including $95.20 per share in cash, an approximately 17% premium over the 60-day trading period.
In a statement about the offer, Jacobs said that it “delivers immediate and certain value to GMS shareholders at a meaningful premium.”
"We believe this is a compelling opportunity for GMS investors to realize the full value of their shares in a single, decisive transaction,” he said.
Upon news of the “unsolicited” offer being received, Jacobs suggested that he had been in discussion with GMS leadership since May.
Within a day of news of QXO’s bid being reported, the Wall Street Journal was first to unveil that Home Depot had also made an offer to acquire the building products distributor. Price of that offer has not been revealed.
Analysts have suggested that Home Depot’s established national network and its ability to leverage its private label brands and logistics infrastructure may give the company an edge in being able to integrate GMS’ product lines.
Last year, Home Depot acquired SRS Distribution for $18.25 billion.
A decision is expected once the GMS board conducts its evaluation process.
CONTRACTOR SUPPLY MAGAZINE
The June/July 2025 issue of Contractor Supply magazine is here!
Our cover story,From Dream to Legacy, Jill Tranmer always wanted to have her own business. She never imagined it would be a tool and bearing sales distribution business. Follow her journey at bringing her family together at the Tool Box in Great Falls, Montana.
Also in this issue are Industry Updates on Bulk and Collated Fasteneres; Nailers and Staplers; and Compressors and Accessories.
This digital edition, sponsored by BECK AMERICA Inc., is fully searchable and contains live links to every advertiser and new product listing. Click away!
| Read the Articles Read the Digital Edition |
