Home Depot has emerged victorious in a bidding war for GMS, acquiring the building-products distributor for $4.3 billion or $5.5 billion including debt. The home-improvement giant will make a cash tender offer to purchase all outstanding shares of GMS common stock at $110 per share.
The deal outbid QXO’s recent $95.20-per-share offer, with GMS shares rising 12% in intraday trading to $108.79 and increasing by nearly 30% this year. Home Depot shares slipped 0.8%, while QXO stock gained 3%.
GMS Chairman John Gavin stated that the transaction is in the best interests of the company and its shareholders. The acquisition will expand Home Depot’s capabilities, providing Pro customers with more fulfillment and service options.
The combined entity will have over 1,200 locations and a fleet of more than 8,000 trucks, enabling tens of thousands of daily job site deliveries.
Source: https://www.investopedia.com/home-depot-wins-bidding-war-will-acquire-gms-for-usd4-3b-11763516