Jun. 30 at 3:33 PM
$HD Trade distribution subsidiary SRS Distribution has reached an agreement to buy building-products distributor
$GMS for
$110 a share in a deal totaling
$5.5B beating out rival proposal from the investment vehicle (QXO) of billionaire investor Brad Jacobs that is backed by investors including Jared Kushner, Sequoia Heritage & Walton family.
QXO made a
$95.20/share offer or
$5B in cash & said it was prepared for a hostile takeover if GMS' mgmt did not accept the proposal by June 24
GMS operates a network of more than 300 construction supply hubs in North America, will become part of Home Depot’s SRS Distribution subsidiary, which it acquired for
$18.25B last year in a bid to serve more professional contractors
Expected to be funded thru cash & debt and not expected to alter HD's plan to return to 2x leverage ratio by YE26
To be accretive to adj'd EPS in the first year following closing, ex-synergies
GMS breakup fee:
$147.5M
HD breakup fee:
$230M
$BAC &
$JPM financial advisers to HD