GMS Confirms Takeover Proposal From QXO For $95.20/share In Cash

(RTTNews) - GMS Inc. (GMS), a specialty building products distributor, confirmed Thursday that it has received an unsolicited takeover proposal from QXO, Inc. (QXO) for $95.20 per share in cash.

The company said its Board of Directors, in consultation with its independent legal and financial advisors, will carefully review and evaluate the unsolicited proposal to determine the course of action.

QXO on Wednesday had stated that it sent a proposal to GMS CEO to acquire all shares for $95.20 per share in cash. The proposal implies a total deal value of approximately $5 billion and reflects a 27% premium over GMS's 60-day volume-weighted average price of $74.82.

Following the offer announcement, GMS shares climbed around 17 percent in the after-hours trading on the NYSE on Wednesday, after gaining around 10.6 percent on the regular trading.

In its statement, GMS added that it does not intend to comment further on QXO's unsolicited proposal until the Board has completed its review.

The company also urged its shareholders not to take any action at this time.

Jefferies LLC is acting as financial advisor and Alston & Bird LLP is acting as legal advisor to the Company.

GMS, founded in 1971, operates a network of more than 320 distribution centers with product offerings of wallboard, ceilings, steel framing and complementary construction products. The firm also operates nearly 100 tool sales, rental and service centers.

On the NYSE, GMS shares closed Wednesday's regular trading at $81.01, up 10.61%. In the extended trading, shares climbed 17.27 percent to $95.00.

QXO shares closed 11.7 percent higher at $22.50, and gained 0.7 percent further in the after-hours trading on the NYSE.