Latest news with #GMSInc
Yahoo
02-07-2025
- Business
- Yahoo
GMS Inc. (GMS) Jumps 11.7% on Home Depot Merger
We recently published . GMS Inc. (NYSE:GMS) is one of last week's top performers. GMS Inc. jumped by 11.73 percent on Monday to close at $108.75 apiece following its official $5.5-billion merger with Home Depot Inc., shunning QXO Inc.'s submitted bid. After reviewing two offers GMS Inc. (NYSE:GMS) announced that it has accepted Home Depot's acquisition offer, saying that it deemed its offer the best for the company and its shareholders. The acquisition will be made through the Home Depot's specialty trade distribution subsidiary, SRS Distribution. Under the terms, a subsidiary of SRS will conduct a tender offer to acquire all outstanding shares of GMS common stock for $110 per share for a total of $5.5 billion. 'Following careful consideration of The Home Depot's proposal, along with other potential opportunities for the company, our Board determined that this transaction is in the best interests of GMS and all of our shareholders. Not only does this outcome deliver significant and certain value to our shareholders, but it also has the added benefit of bringing GMS together with The Home Depot and SRS, where we are confident our employees will flourish, our customers and suppliers will benefit from our increased offerings and resources, and we will honor the legacy of our founders who made all of this possible,' said GMS Inc. (NYSE:GMS) Chairman John Gavin. A construction worker using a drill while installing steel framing in a building. Meanwhile, John Turner Jr. will continue to be the company's president and CEO as part of the SRS organization. While we acknowledge the potential of GMS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-07-2025
- Business
- Yahoo
Home Depot goes after pro market with $4.3B acquisition
This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. The Home Depot is again bolstering its offering for pro customers. The home improvement company has struck a deal for its subsidiary SRS Distribution to acquire specialty building products distributor GMS Inc, subject to customary closing conditions. A subsidiary of SRS will purchase all outstanding shares of GMS' common stock for $110 per share for a total equity value of about $4.3 billion. 'Acquiring GMS represents a next logical step in [Home Depot's] deep dig into the Pro distribution channel,' Wells Fargo analysts led by Zachary Fadem said in emailed comments Monday. The deal, which is expected to close by the end of this fiscal year, will be funded through cash on hand and debt. Including debt, the transaction is valued at about $5.5 billion, the companies announced Monday. "The combination of GMS and SRS will provide the residential and commercial Pro customer with more fulfillment and service options than ever before,' Dan Tinker, CEO of SRS, said in a statement. 'Together, we'll create a network of more than 1,200 locations and a fleet of more than 8,000 trucks capable of making tens of thousands of jobsite deliveries per day.' This move is expected to accelerate SRS's goals of becoming a multi-category building distributor. GMS' business focuses on specialty building materials, including drywall, ceilings, steel frames and other products for residential and commercial construction and remodeling projects. It will also expand SRS' distribution footprint in the U.S. and Canada, the company said in its announcement. This also strengthens Home Depot's position among pro customers. The home improvement retailer last year acquired SRS — which serves roofing, landscaping and pool contractors — for about $18.25 billion. At the time, Home Depot said the acquisition expanded its total addressable market by $50 billion to about $1 trillion. "The Home Depot acquired SRS as a platform for growth, and SRS continues to demonstrate exceptional execution and strong performance," Home Depot CEO Ted Decker said in a statement. "In our first year of working together, we've captured significant synergies, including cross-selling new products and service offerings to both Home Depot and SRS customers, advancing Home Depot's enterprise trade credit program through the SRS platform, and many other initiatives designed to drive the customer value proposition and operational efficiency. This success gives us confidence that the addition of GMS to the SRS platform will allow us to create even greater value for our customers." Home Depot and rival Lowe's have been working to win over the pro customer segment in recent years. Earlier this year, Home Depot appointed long-time company veteran Michael Rowe as its executive vice president of pro, tasked with growing the retailer's pro business. To better serve those customers, Home Depot also opened four distribution centers stocked with big and bulky products, including lumber, insulation and roofing shingles. Its agreement for SRS to acquire GMS, however, comes at a time when home improvement retailers feel the pressures of a slowing housing market. During the first quarter of this year, home sales declined 3.1% year over year, according to research from GlobalData. For Home Depot, the retailer reported Q1 net sales grew 9.4% year over year to $39.9 billion, while comparable sales fell 0.3%. Billy Bastek, executive vice president of merchandising, said on a call in May that pro comp sales were positive during the quarter and outpaced DIY customer sales. Recommended Reading Beyond Inc. acquires Zulily brand for $4.5M Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-06-2025
- Business
- Yahoo
TD Cowen Reaffirms Home Depot (HD) Rating, Target on the Possibility of GMS Acquisition
The Home Depot, Inc. (NYSE:HD) is one of the 12 stocks that will make you rich in 10 years. On June 23, TD Cowen reaffirmed its 'Buy' rating on Home Depot's stock. The firm also kept the $470.00 price target. This decision followed reports of the company's potential acquisition of GMS Inc. (NYSE:GMS), a specialty distributor of building products. ThreeRivers11 / Reports indicate that Home Depot submitted a competing offer to acquire GMS following an initial bid by QXO. According to TD Cowen, the potential GMS acquisition aligns with Home Depot's strategy to expand its presence in the professional contractor market. The firm noted that Home Depot has done well in previous acquisition attempts. For instance, while the market initially viewed the SRS acquisition skeptically, it has proven 'very successful,' demonstrating Home Depot's ability to integrate and grow acquired businesses. Nevertheless, TD Cowen expressed a neutral stance on the GMS bid, stating that it would move Home Depot further from its core single-family residential professional business. This could add operational complexity and dilute margins at a price described as 'not cheap.' The acquisition could also delay Home Depot's share buyback program. The Home Depot, Inc. (NYSE:HD) is the largest home improvement retailer in the U.S. It sells building materials, home improvement products, lawn and garden supplies, and offers installation and tool rental services. Its key product categories include building materials, décor, and hardlines like tools and appliances. While we acknowledge the potential of HD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None.
Yahoo
26-06-2025
- Business
- Yahoo
QXO (QXO) Falls 7.23% After $2-Billion Share Sale
We recently published . QXO, Inc. (NYSE:QXO) is one of the worst-performing stocks on Wednesday. QXO declined by 7.23 percent on Wednesday to close at $21.81 apiece as investors soured on its plans to raise $2 billion through a share sale program. In a statement on Tuesday, QXO, Inc. (NYSE:QXO) said that proceeds from the offer will be used for general corporate purposes, which may include funding future business acquisitions. While no deal has yet to be finalized, it can be recalled that QXO, Inc. (NYSE:QXO) late last week announced plans to acquire GMS Inc. for $5 billion. The proposed transaction will cover all outstanding shares at a price of $95.20 apiece. QXO, Inc. (NYSE:QXO) remains in a bidding war with Home Depot Inc. for the acquisition of GMS. In relation to the share sale, the company will grant its underwriters an option to purchase up to an additional $300 million of shares of common stock at the public offering price. Goldman Sachs & Co. LLC, Morgan Stanley, and Wells Fargo Securities are acting as underwriters for the Offering. While we acknowledge the potential of QXO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
22-06-2025
- Business
- Yahoo
GMS Inc (GMS) Soars 31.88% W/W as 2 Building Giants Engage in Bidding War
GMS Inc. (NYSE:GMS) is one of the . GMS Inc. (NYSE:GMS) jumped by 31.88 percent week-on-week to finish at $100.27 versus the $76.03 on June 13, as investors snapped up shares following news that it was being targeted for acquisition by two home building giants. Last week, GMS Inc. (NYSE:GMS) confirmed receipt of QXO Inc.'s (NYSE:QXO) offer to acquire the company, saying that it will review the bid and make a decision that aligns with the best interests of the company and its shareholders. Meanwhile, The Wall Street Journal reported that Home Depot also offered to acquire GMS Inc. (NYSE:GMS), making it the second firm to bid for GMS Inc. (NYSE:GMS) and engage in a bidding war with QXO Inc. (NYSE:QXO). Home Depot, however, declined to comment on the acquisition reports. A construction worker using a drill while installing steel framing in a building. Founded in 1971, GMS operates a network of more than 320 distribution centers and operates nearly 100 tool sales, rental, and service centers across the United States and Canada. While we acknowledge the potential of GMS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
