Brad Jacobs' QXO Offers $5B for GMS, Signals Potential Hostile Takeover

Billionaire Brad Jacobs’ QXO Inc. has made a $5 billion all-cash offer to acquire GMS Inc. (NYSE:GMS), signaling it may pursue a hostile takeover if the deal is rejected. The offer values GMS shares at $95.20, a 17% premium over its latest closing price and 29% above its May 22 valuation.

This move marks Jacobs’ second hostile takeover attempt in 2025, part of his plan to grow QXO into a $50 billion building-products powerhouse within a decade. Earlier this year, QXO secured an $11 billion acquisition of Beacon Roofing Supply (NASDAQ:BECN), significantly expanding its U.S. and Canadian footprint.

An acquisition of Georgia-based GMS would expand QXO’s reach beyond roofing into interior construction materials like drywall, ceilings, and steel framing. GMS operates over 300 distribution centers across North America.

Jacobs revealed that he had been in private discussions with GMS CEO John Turner since June 2024. However, after GMS stock surged following takeover speculation, Jacobs chose to go public with the bid. He criticized GMS’s management and warned that if the board doesn’t respond by June 24, QXO would take the offer directly to shareholders.

Reports suggest other buyers may be circling, including Home Depot (NYSE:HD), according to the Wall Street Journal. While Home Depot and GMS declined to comment, Jacobs noted that bankers from J.P. Morgan and Jefferies had been shopping GMS to potential bidders.

QXO is advised by Goldman Sachs and Morgan Stanley, with legal counsel from Paul, Weiss, Rifkind, Wharton & Garrison LLP. Originally a small software firm, QXO was rebranded by Jacobs in 2023 after a $1 billion investment and now serves as a platform for consolidation in the building materials industry.