David Marino-Nachison
1 min read
In This Article:
Home Depot could be in a buyout battle.
The Wall Street Journal on Thursday reported that Home Depot (HD), the home-improvement giant, has made an offer to acquire GMS (GMS), a building-products distribution company. The Journal, citing people familiar with the matter, did not specify a price; Visible Alpha lists the market capitalization of GMS at around $3.1 billion.
QXO (QXO), another building products distributor, on Wednesday said it had offered to buy GMS for $95.20 per share, an 18% premium to Wednesday's close.
Shares of GMS soared 27% at the opening bell Friday. They rose about 10% on Wednesday; stock markets were closed yesterday. Home Depot's shares rose 0.4%, while QXO's were up nearly 1.4%.
The offer "delivers immediate and certain value to GMS shareholders at a meaningful premium,” QXO CEO and Chairman Brad Jacobs said in a statement. "We believe this is a compelling opportunity for GMS investors to realize the full value of their shares in a single, decisive transaction.” QXO declined to comment on the Journal's report.
GMS on Thursday confirmed receipt of QXO's offer and said its board would review it. The company did not respond to Investopedia's request for comment on the Journal's report in time for publication.
Home Depot last year acquired SRS Distribution, which sells and distributes construction materials, for more than $18 billion. The company declined to comment.
UPDATE—This article has been updated with the latest share price information.
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