The offer of US$95.20 a share represents a 27% premium to GMS’s 60-day volume-weighted average price of US$74.82. — Bloomberg
CONNECTICUT: QXO Inc has sent a letter to GMS Inc proposing to buy the building products distributor for about US$5bil.
The offer of US$95.20 a share represents a 27% premium to GMS’s 60-day volume-weighted average price of US$74.82, according to a statement Wednesday that included the letter from QXO chief financial officer Ihsan Essaid to GMS chief executive officer John Turner.
“We don’t play games – we’re straightforward and we move fast,” Essaid said in the letter. “In that spirit we have put forth a highly compelling offer at the high end of our valuation range.”
Shares of Tucker, Georgia-based GMS rose almost 11% to US$81.01 Wednesday in New York trading, giving the company a market value of US$3.1bil.
After the close of regular trading, the shares were up an additional 14% to about US$95 apiece.
A representative for GMS didn’t immediately respond to a request for comment.
QXO agreed in March to acquire Beacon Roofing Supply Inc in a deal that valued the distributor of roofing, waterproofing and exterior products at about US$11bil including debt. — Bloomberg
