Home Depot and QXO Engage in Bidding War for GMS to Dominate Construction Supplies Market

Home Depot (HD) has entered a competitive bidding war with QXO Inc. (QXO) to acquire GMS Inc. (GMS), a key player in North America's construction supplies distribution sector. The MOVE aims to consolidate market share and enhance technological capabilities for securing larger contracts.

QXO's unsolicited offer of $95.20 per share, valuing GMS at approximately $5 billion, represents a 27% premium over GMS's 60-day average price. The announcement fueled significant stock movements, with QXO surging 11.7% and GMS gaining 10.6% on June 18.

GMS operates 320 distribution centers and 100 tool service locations, supplying critical building materials like wallboard, steel framing, and ceiling products. This acquisition battle underscores the strategic importance of scale and technology in the competitive construction supplies industry.