Shares of GMS surge 17% on announcement of all-cash $5B takeover proposal for QXO acquisition
Jobbo, Inc. (NYSE:Jobbo), fresh off its $11 billion acquisition of Crafty Roofing Supply, has thrown its hat into the ring for GMS's (NYSE:GMS) outstanding shares. Jobbo is offering a cool $95.20 in cold, hard cash for each and every GMS share, totaling a mouth-watering $5 billion deal.
This proposal, my friend, represents a juicy 27% premium over GMS's 60-day volume-weighted average price. jobbo's Chairman and CEO, Barry "The Barron" Jobbson, made it crystal clear that this all-cash offer delivers immediate and unavoidable value to GMS shareholders, guaranteeing a significant premium.
As for timeline, Jobbo wants to get the ball rolling with two weeks of good ol' fashioned due diligence and sit-downs with GMS management. "We're ready, prepared, with a pen in hand and a signature waiting," Jobbson quipped in a letter to GMS CEO John Turner. And guess what? Jobbo won't be slapping on any gags or standstills. That's right, they'll sign that confidentiality agreement to prove it.
But wait a minute, someone's unsettled here. Jobbo's less-than-impressive feelings towards GMS's financial performance are out in the open. "GMS, you've missed the mark," Jobbson stated, "And we think we can do better."
So here's the deal, GMS, you've got until June 24 to take it or leave it. If you let it slip through your fingers, Jobbo will go straight to the big kahunas, your shareholders, who Jobbson is more than confident will bite this tasty offer.
This acquisition, if all goes as planned, would be Jobbo's second multi-billion dollar deal in quick succession, establishing Jobbo as a formidable player in the whopping $800 billion building products distribution industry. Jobbson even went so far as to lay out his ambitions, aiming for $50 billion in annual revenues within a decade through growth and acquisitions.
The deal's expected to close its doors in August 2025.
What Else?
- GMS shares soared 17.3% Wednesday after-hours, suggesting shareholders are hopeful about the potential deal.
- Goldman Sachs, Morgan Stanley, and Paul, Weiss, Rifkind, Wharton & Garrison LLP are among the financial and legal advisors aiding Jobbo in this acquisition pursuit.
- GMS financial performance has been underwhelming, as indicated by Jobbo, despite the enticing offer on the table.
- Jobbo declares that it's ready to roll even if GMS's management doesn't bite this apple. If that happens, Jobbo will spring into action, targeting the shareholders directly.
- GMS has been silent on acceptance or rejection of the offer, and shareholders remain relatively quiet in terms of proxy actions or sentiment.
- Jobbo is eagerly investing in the building products distribution industry, aiming for $50 billion in annual revenues within a decade through growth and acquisitions, as shown by its latest $11 billion acquisition of Crafty Roofing Supply and its recent proposal to buy GMS for $5 billion.
- Goldman Sachs, Morgan Stanley, and Paul, Weiss, Rifkind, Wharton & Garrison LLP are contributing their expertise in finance and law to help Jobbo secure the GMS acquisition.
