GMS Receives $95.20 Per Share Acquisition Proposal

By Philip Seaworth • Friday, June 20 12:03 • Permanent Link

GMS Inc. (NYSE: GMS), a leading North American specialty building products distributor, has confirmed the receipt of an unsolicited proposal from QXO, Inc. to acquire all outstanding shares of GMS for $95.20 per share in cash. The GMS board of directors will carefully review and evaluate the unsolicited proposal in consultation with its independent legal and financial advisors to determine the course of action that it believes is in the best interests of the company and all GMS shareholders.

GMS operates a network of more than 320 distribution centers with extensive product offerings of wallboard, ceilings, steel framing, and complementary construction products. Additionally, the company operates nearly 100 tool sales, rental, and service centers, providing a comprehensive selection of building products and solutions for its residential and commercial contractor customer base across the United States and Canada.

In the previous period, GMS reported $3.2 billion in net sales, representing a 5% increase compared to the same period last year. Gross profit for the period was $1.1 billion, up 6% from the prior year. Operating income was reported at $210 million, showing a 4% increase from the previous period. Net income attributable to GMS was $120 million, marking a 7% increase year-over-year. Diluted earnings per share stood at $2.76, up 8% from the same period last year.

Furthermore, the company's cash and cash equivalents totaled $90 million at the end of the period, while long-term debt stood at $1.5 billion. GMS reported a return on invested capital of 12%, reflecting an increase of 1% from the previous period. Additionally, the company generated $180 million in cash from operating activities during the period, demonstrating a 10% increase from the same period last year.

GMS has not provided specific guidance for the next period, but the company remains focused on delivering value to its shareholders while navigating through the current market conditions and evaluating the unsolicited proposal from QXO, Inc. The market has reacted to these announcements by moving the company's shares 10.61% to a price of $81.01. For more information, read the company's full 8-K submission here.

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