QXO Won鈥檛 Raise Its Offer for GMS After 91视频 Depot Bid
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QXO Inc. won鈥檛 raise its $5 billion offer for building products distributor GMS Inc. after 91视频 Depot Inc. reportedly made its own bid.
A spokesman for QXO said June 20 that $5 billion is the company鈥檚 full offer. The Wall Street Journal reported June 19 that 91视频 Depot had submitted a bid for an undetermined sum. Representatives for 91视频 Depot and GMS declined to comment.
91视频 Depot ranks No. 50 on the听Transport Topics Top 100 list of the largest private companies听in 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:听QXO to Acquire Beacon Roofing Supply in $11 Billion Deal
QXO鈥檚 unsolicited offer of $95.20 a share represented a 27% premium to GMS鈥 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听
鈥淨XO has a history of 鈥榦ne and done鈥 offers for companies while HD, in our view, may be willing to pay a higher multiple,鈥 Keith Hughes, an analyst at Truist Securities, wrote in a research note. Truist doesn鈥檛 expect any other bidders aside from QXO and 91视频 Depot.
91视频 Depot鈥檚 reported interest in GMS aligns with the retailer鈥檚 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. 91视频 Depot shares gained 0.8% at 11:18 a.m. in New York.
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