The construction supply market just got a lot more competitive—and a lot more interesting.
Home Depot, the world’s largest home improvement retailer, has made a private bid to acquire GMS, a major building-products distributor based in Georgia, according to a report by The Wall Street Journal. This move puts it in direct competition with Brad Jacobs’ QXO, which already submitted a $5 billion all-cash offer earlier this week.
Welcome to a high-stakes bidding war for control of a company that sits at the heart of America’s construction boom.
The Battle Begins: Two Titans, One Target
Jacobs’ QXO offered $95.20 per share in an unsolicited bid for GMS, valuing the company at around $5 billion. That sent GMS stock soaring nearly 30% to over $104, instantly creating speculation that a bidding war was inevitable.
Home Depot’s offer—while not yet disclosed publicly—signals serious intent. After all, this isn’t its first rodeo. Just last year, Home Depot acquired SRS Distribution for $18.25 billion, targeting pro contractors and roofing supply chains.
Why GMS Matters So Much
GMS (Gypsum Management and Supply) may not be a household name, but it’s a powerhouse in construction distribution. With over 320 distribution centers and 100 tool rental locations, it serves everyone from DIYers to large commercial builders.
Their catalog includes:
- Wallboard and ceilings
- Steel framing products
- Construction tools and services
In an increasingly fragmented market, companies like Home Depot and QXO see massive opportunity in consolidation, tech-powered logistics, and scaling distribution to meet surging demand for new housing.
The Bigger Picture: Housing Demand and Strategic Acquisitions
Home Depot and QXO both view the construction supply chain as ripe for disruption and growth—despite recent headwinds like tariffs and slower economic activity affecting GMS’s 2025 performance.
Still, with America facing a severe housing shortage and infrastructure demands growing, this sector is poised for long-term strength.
QXO, backed by deal-making heavyweight Brad Jacobs, recently acquired Beacon Roofing Supply for $11 billion after a persistent offer process—suggesting he may go directly to shareholders if GMS’s board doesn’t play ball.
Strategy Showdown: Experience vs. Size
- Home Depot has the scale: A $345 billion market cap gives it a serious upper hand in capital and resources.
- QXO has the playbook: Brad Jacobs specializes in buy-and-build strategies, transforming fragmented sectors into giants.
“Jacobs often starts friendly but isn’t afraid to go hostile if necessary,” reports WSJ, noting his recent strategy with Beacon Roofing Supply.
With a June 24 deadline for GMS to respond to QXO’s proposal, all eyes are now on whether Home Depot will up the ante—or walk away.
What’s Next for GMS?
- GMS has confirmed it received QXO’s offer and is evaluating it.
- Investors already priced in the possibility of a deal by bidding the stock up before any offers were confirmed.
- If no agreement is reached, Jacobs may launch a tender offer directly to shareholders—just like he did with Beacon.
- Home Depot may submit a formal counteroffer to stay in the game.
This acquisition could shape the future of construction supply chains, determine who controls key distribution routes, and set the tone for further consolidation in the sector.
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