BREAKINGVIEWS-Serial buyer pushes limit of unmysterious M&A ways
Brad Jacobs, known for his extensive M&A experience, is utilizing QXO to consolidate building materials distributors, targeting $50 billion in sales. His transparent approach has been effective but remains untested at this scale. Recently, GMS announced its acquisition by Home Depot’s SRS Distribution for approximately $5.5 billion, following an unsolicited bid from QXO. Jefferies, BofA, JPMorgan, Goldman Sachs, and Morgan Stanley are advising the involved parties.
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own.)
By Jeffrey Goldfarb
NEW YORK, July 10 (Reuters Breakingviews) - Takeover targets can spot Brad Jacobs and his 500-deal history coming a mile away. The entrepreneur is now using QXO to roll up building materials distributors into an enterprise with $50 bln of sales. His unusually candid strategy has worked, but it’s also unproven at this size.
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CONTEXT NEWS
Building products distributor GMS said on June 30 that it had agreed to be acquired by Home Depot’s SRS Distribution subsidiary for about $5.5 billion, including debt, after it disclosed an unsolicited $5 billion takeover bid from QXO on June 19.
Jefferies is advising GMS, while BofA and JPMorgan are advising Home Depot. Goldman Sachs and Morgan Stanley were advising QXO.
Loose lips lift courtships: leaked deals fetch higher premia
(Editing by Jonathan Guilford; Production by Maya Nandhini)
