Home Depot announced it has acquired building products distributor GMS Inc. for $110 per share in cash, valuing the transaction at approximately $5.5 billion including debt. This acquisition by Home Depot effectively concludes QXO's earlier $5 billion all-cash proposal for GMS. Home Depot's sweetened bid successfully outmaneuvered QXO's offer.
Following this development, QXO Inc. has shifted its focus to evaluating several alternative acquisition opportunities, according to a person familiar with the matter. This outcome means QXO will not proceed with its proposed acquisition of GMS, but it remains committed to its strategy of aggressive M&A in the building products distribution industry. QXO's rapid pivot indicates its ongoing pursuit of consolidation targets to achieve its long-term revenue goals.
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