06:37 AM EDT, 06/20/2025 (MT Newswires) -- GMS (GMS) shares spiked early Friday after QXO (QXO) offered to purchase the building products distributor for roughly $5 billion earlier in the week.

QXO on Wednesday proposed to acquire GMS for $95.20 per share in cash, reflecting a 27% premium to the latter's 60-day volume-weighted average price at the close of that day's trading session. GMS on Thursday confirmed that it received the unsolicited offer and said its board of directors will "carefully review and evaluate" the bid.

Shares of GMS rose 23% in Friday's most recent premarket activity, while QXO gained 2.8%.

"Our all-cash proposal to acquire GMS for $95.20 per share delivers immediate and certain value to GMS shareholders at a meaningful premium," QXO Chief Executive Brad Jacobs said in the Wednesday statement. "We believe this is a compelling opportunity for GMS investors to realize the full value of their shares in a single, decisive transaction."

In a Wednesday letter to GMS CEO John Turner, QXO said it has been assessing GMS as a potential acquisition target for more than a year. The company said its offer doesn't require any financing condition.

QXO requested GMS to respond to its offer by June 24, or it will take the proposal directly to the company's shareholders. In April, QXO completed its acquisition of Beacon Roofing Supply (BECN) for about $11 billion.

GMS on Wednesday reported fiscal fourth-quarter adjusted earnings of $1.29 a share, down from $2.01 the year before, but ahead of the FactSet-polled consensus of $1.11. Sales declined to $1.33 billion from $1.41 billion, but topped the Street's view for nearly $1.3 billion.

"The ongoing challenging interest rate environment and general market uncertainty continues to be a headwind for the business, contributing to reduced levels of activity in each of our major end markets," Turner said in the earnings release. "As we begin fiscal 2026, we are cautiously optimistic that we are nearing the bottom of this cycle and believe pent-up demand will materialize as the macro-environment improves."

Separately, multiple media outlets on Thursday reported that Home Depot ( HD ) has submitted its own takeover offer for GMS. The home-improvement retailer didn't immediately respond to a request for comment by MT Newswires.