Latest news with #Georgia-based
Yahoo
5 hours ago
- Business
- Yahoo
GMS shares spike 23% premarket on report of Home Depot takeover bid
- DIY chain Home Depot (NYSE:HD) is making an offer for building-products distributor GMS, the Wall Street Journal has reported, citing people familiar with the matter. The exact price or timing of Home Depot's bid could not be determined, the WSJ noted. Shares in GMS (NYSE:GMS), which have already risen in recent weeks thanks to increased speculation over a possible acquisition, soared by over 23% in premarket U.S. trading on Friday. GMS now has a market capitalization of $3.1 billion. On Wednesday, dealmaker Brad Jacobs' QXO (NYSE:QXO) announced it had submitted its own unsolicited proposal to purchase GMS for roughly $5 billion, or $95.20 a share in cash. QXO shares rose by more than 3% prior to the opening bell on Wall Street. Georgia-based GMS, which supplies tools and building materials for consumers and contractors, confirmed that it had received QXO's offer and would review it. GMS has been at the center of rumors over a potential takeover, as firms look to take advantage of a recent need for more housing in spite of tariff-related economic uncertainty. Last year, Home Depot notched a deal to snap up SRS Distribution, a seller of professional roofing goods, for $18.25 billion, including debt, betting on increased spending by contractors and construction businesses. The largest publicly-traded distributor of wallboard, ceiling tiles, steel framing, and interior complementary products, GMS has 45% exposure to residential properties and 55% commercial real estate, analysts at Wolfe Research led by Trevor Allinson said in a note to clients on Thursday. The Wolfe strategists argued that, should the WSJ report prove to be accurate and Home Depot's offer represent a premium to QXO's bid, they would not expect a bidding war for GMS to begin. This would be due to "QXO's commitment to price discipline" when engaging in mergers and acquisitions, the analysts said. Related articles GMS shares spike 23% premarket on report of Home Depot takeover bid CarMax shares surge on strong Q1 earnings beat The Middle East crises could end up offering a good buying opportunity: Barclays Sign in to access your portfolio
Mint
9 hours ago
- Business
- Mint
Aflac finds suspicious activity on US network that may impact Social Security numbers, other data
Aflac says that it has identified suspicious activity on its network in the U.S. that may impact Social Security numbers and other personal information, calling the incident part of a cybercrime campaign against the insurance industry. The company said Friday that the intrusion was stopped within hours. 'We continue to serve our customers as we respond to this incident and can underwrite policies, review claims, and otherwise service our customers as usual,' Aflac said in a statement. The company said that it's in the early stages of a review of the incident, and so far is unable to determine the total number of affected individuals. Aflac Inc. said potentially impacted files contain claims information, health information, Social Security numbers, and other personal information, related to customers, beneficiaries, employees, agents, and other individuals in its U.S. business. The Columbus, Georgia-based company said that it will offer free credit monitoring and identity theft protection and Medical Shield for 24 months to anyone that calls its call center. Aflac is not the only company to deal with an incident recently. A string of recent cyberattacks and data breaches involving the systems of major retailers have started affecting shoppers. United Natural Foods, a wholesale distributor that supplies Whole Foods and other grocers, said earlier this month that a breach of its systems was disrupting its ability to fulfill orders — leaving many stores without certain items. In the U.K., consumers could not order from the website of Marks & Spencer for more than six weeks — and found fewer in-store options after hackers targeted the British clothing, home goods and food retailer. A cyberattack on Co-op, a U.K. grocery chain, also led to empty shelves in some stores. A security breach detected by Victoria's Secret last month led the popular lingerie seller to shut down its U.S. shopping site for nearly four days, as well as to halt some in-store services. Victoria's Secret later disclosed that its corporate systems also were affected, too, causing the company to delay the release of its first quarter earnings. The North Face said that it discovered a 'small-scale credential stuffing attack' on its website in April. The company reported that no credit card data was compromised and said the incident, which impacted 1,500 consumers, was 'quickly contained.' Meanwhile, Adidas disclosed last month that an 'unauthorized external party' obtained some data, which was mostly contact information, through a third-party customer service provider. This article was generated from an automated news agency feed without modifications to text.
CNBC
12 hours ago
- Business
- CNBC
Home Depot and billionaire Brad Jacobs's QXO go head-to-head in possible hostile bid for GMS
Billionaire Brad Jacobs' new building-products distributor QXO offered to acquire GMS for about $5 billion in cash and said it will proceed with a hostile takeover if the company's management rejects the proposal. This is Jacobs's second hostile takeover threat in the building sector this year and part of his plan to turn QXO into a $50 billion revenue building-products distributor within a decade. Home improvement chain Home Depot has also made an offer for GMS, The Wall Street Journal reported on Thursday, citing people familiar with the matter. Spokespersons for Home Depot and GMS declined to comment on the report. The Jacobs's offer comes three months after QXO clinched an $11 billion deal to buy Beacon Roofing Supply, ending a prolonged takeover battle for the roofing company and significantly expanding its footprint in the U.S. and Canada. An acquisition of GMS would expand QXO's market from roofs into house interior materials, including drywall. QXO's proposal is still technically in the friendly phase, but Jacobs said that if GMS's board did not accept the offer by June 24, QXO was prepared to bypass management. "If you choose not to engage ... we are prepared to take our offer directly to GMS's shareholders who we're confident will find the offer attractive," Jacobs said in a letter sent to GMS Chief Executive Officer John Turner. In similar comments made during his takeover offer to Beacon, Jacobs said GMS was poorly managed and could be more profitable to shareholders under his command. Georgia-based GMS said in a statement on Thursday that it has received an unsolicited proposal from QXO that will be reviewed by its board. It did not immediately respond to a Reuters request for comment. GMS operates a network of more than 300 distribution centers and its product lineup includes wallboard, ceilings, steel framing and gypsum. Both Beacon and GMS operate primarily in the U.S., with additional presence in Canada. The U.S. building industry, mostly locally sourced and fairly protected from tariffs, is undergoing consolidation. QXO said it offered $95.20 per share for all outstanding shares of GMS, a premium of about 17% over the company's closing price on Wednesday. In the letter, Jacobs disclosed he first approached Turner in June last year, with conversations continuing until at least May 22, when the two CEOs met in New York. Jacobs added his decision to take the offer public came after GMS's shares rose following market speculation over a potential QXO acquisition. The offer represents a 29% premium over GMS's value on May 22, he said. On Wednesday, before the offer was made public, shares of GMS hit their highest level in almost five months after the company reported upbeat quarterly results and announced an additional $25 million in annualized cost reductions. Jacobs said that following the private talks with Turner, he had heard from industry participants that J.P. Morgan and Jefferies bankers had been aggressively trying to find other suitors to buy GMS. Goldman Sachs and Morgan Stanley are acting as financial advisers to QXO. And Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal counsel. Jacobs has built an empire of multibillion-dollar companies spanning industries from logistics to waste management and equipment rentals by acquiring companies in industries undergoing consolidation, and spinning some of them off at a higher value. QXO was a relatively small software company until 2023, when Jacobs invested about $1 billion and renamed and repurposed it.
Time of India
16 hours ago
- Business
- Time of India
Brad Jacobs' QXO offers $5 billion for GMS, threatens to go hostile
NEW YORK | BENGALURU: Billionaire Brad Jacobs ' new building-products distributor QXO made an offer on Wednesday to acquire GMS for about $5 billion in cash and said it will proceed with a hostile takeover if the company's management rejects the proposal. This is Jacobs's second hostile takeover threat in the building sector this year and part of his plan to turn QXO into a $50 billion revenue building-products distributor within a decade. The offer comes three months after QXO clinched an $11 billion deal to buy Beacon Roofing Supply , ending a prolonged takeover battle for the roofing company and significantly expanding its footprint in the U.S. and Canada. An acquisition of GMS would expand QXO's market from roofs into house interior materials, including drywall. QXO's proposal is still technically in the friendly phase, but Jacobs said that if GMS's board did not accept the offer by June 24, QXO was prepared to bypass management. "If you choose not to engage ... we are prepared to take our offer directly to GMS's shareholders who we're confident will find the offer attractive," Jacobs said in a letter sent to GMS Chief Executive Officer John Turner. In similar comments made during his takeover offer to Beacon, Jacobs said GMS was poorly managed and could be more profitable to shareholders under his command. Georgia-based GMS said in a statement on Thursday that it has received an unsolicited proposal from QXO that will be reviewed by its board. It did not immediately respond to a Reuters request for comment. GMS operates a network of more than 300 distribution centers and its product lineup includes wallboard, ceilings, steel framing and gypsum. Both Beacon and GMS operate primarily in the U.S., with additional presence in Canada. The U.S. building industry, mostly locally sourced and fairly protected from tariffs, is undergoing consolidation. Speculation QXO said it offered $95.20 per share for all outstanding shares of GMS, a premium of about 17% over the company's closing price on Wednesday. In the letter, Jacobs disclosed he first approached Turner in June last year, with conversations continuing until at least May 22, when the two CEOs met in New York. Jacobs added his decision to take the offer public came after GMS's shares rose following market speculation over a potential QXO acquisition. The offer represents a 29% premium over GMS's value on May 22, he said. On Wednesday, before the offer was made public, shares of GMS hit their highest level in almost five months after the company reported upbeat quarterly results and announced an additional $25 million in annualized cost reductions. Jacobs said following the private talks with Turner, he heard from industry participants that J.P. Morgan and Jefferies bankers had been aggressively trying to find other suitors to buy GMS. Home improvement chain Home Depot has also made an offer for GMS, the Wall Street Journal reported on Thursday, citing people familiar with the matter. Spokespersons for Home Depot and GMS declined to comment on the report. Goldman Sachs and Morgan Stanley are acting as financial advisers to QXO. And Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal counsel. Jacobs has built an empire of multibillion-dollar companies spanning industries from logistics to waste management and equipment rentals by acquiring companies in industries undergoing consolidation, and spinning some of them off at a higher value. QXO was a relatively small software company until 2023, when Jacobs invested about $1 billion and renamed and repurposed it.
Politico
a day ago
- Business
- Politico
Black church leaders pressure companies over Trump's anti-DEI push
Black church leaders are ramping up the pressure on corporate America as companies continue to roll back their diversity, equity and inclusion policies, trying to serve as a counterbalance to President Donald Trump's aggressive push to end DEI initiatives across the country. The pressure comes as liberals are still trying to figure out how to respond to Trump's culture war — and as the Democratic Party grapples with Trump's improvement among Black and Latino voters in the 2024 election. 'Diversity, equity and inclusion is not charity. It's not a handout and the African American community is a valuable partner,' said Jamal Bryant, a Georgia-based pastor who masterminded a boycott of Target after the retailer curtailed its DEI initiatives in January. 'So we want to know: If you can take our dollars, how come you won't stand with us?' Shortly after Trump's election, major companies like Meta and Google rolled back their DEI commitments made in the wake of the 2020 murder of George Floyd by former Minneapolis police officer Derek Chauvin. Within his first week of returning to office, Trump signed an executive order eliminating DEI practices in the federal workplace. He called such programs 'dangerous, demeaning, and immoral race- and sex-based preferences.' 'President Trump is bringing back common sense by eliminating DEI policies and making merit the standard once again,' White House Assistant Press Secretary Liz Huston said in a statement. 'Performance-driven companies see the value in President Trump's policies and are following his lead.' But Black church leaders see these boycotts — Bryant announced in May that Dollar General would be the next target — as a way to push back against the Trump-fueled wave and hold companies accountable. Bryant says his movement has garnered the support of 2,000 other churches and over 200,000 people signed his pledge to boycott Target. Frederick Haynes, the pastor of the 13,000-member Friendship-West Baptist Church in Dallas, said joining the movement reflected how he was raised, influenced by the values of the Civil Rights Movement. Companies, he said, must recognize that they have 'a moral responsibility' to profiting. 'They have a responsibility to morally go inward and check themselves and recognize that you don't have a United States without diversity, without equity, without being inclusive,' Haynes said. In a statement to POLITICO, Dollar General said 'our mission is not 'Serving Some Others' — it is simply 'Serving Others.'' The company added that it serves millions of Americans 'from all backgrounds and walks of life' in more than 20,500 stores. 'As we have since our founding, we continuously evolve our programs in support of the long-term interests of all stakeholders.' Rev. Al Sharpton — the civil rights leader who supported Bryant's Target boycott — said the company boycotts are one of the most effective ways to push back against the rollback. 'The success of the Montgomery boycott is that it changed the law,' said Sharpton, founder and president of the National Action Network, referencing the famous mid-1950s bus boycott to protest segregation. 'We can't just do things as a grievance, we must go for their bottom line.' It is hard to tell exactly how much boycotts are hurting companies' bottom lines. But Target's CEO Brian Cornell in May acknowledged that at least some of its sales drop, including a quarterly sales decrease by 2.8 percent, was due to 'headwinds' including 'the reaction to the updates we shared on Belonging in January,' referring to the company's announcement to end their DEI programs, along with consumer confidence and concerns around tariffs. A spokesperson for Target told POLITICO that the company is 'absolutely dedicated to fostering inclusivity for everyone — our team members, our guests and our supply partners.' 'Today, we are proud of the progress we've made since 2020 and believe it has allowed us to better serve the needs of our customers,' the spokesperson said in a statement. But Sharpton said the boycott is still a powerful tool. 'The power the Black church has is that the people that attend church are your major consumers,' said Sharpton. 'You go to a Black church that has 2,000 people and 1,900 of them are the ones that shop.' Sharpton has his own demonstration planned for this summer — a rally on Wall Street on Aug. 28, the 62nd anniversary of the March on Washington for Jobs and Freedom where Rev. Martin Luther King Jr. gave his renowned 'I Have a Dream' speech. Sharpton said he chose the date for the rally on Wall Street intentionally. 'I wanted this year to show the pressure that we're putting on these companies with DEI, to go right to the bastion of industry and right where the stock exchange is and say to them that if you do not want to have diversity — in your boardroom, with your contracts and your employment — then you will not have diversity in your consumer base,' said Sharpton. But the boycotts do present challenges for church leaders. In some cases, Sharpton said, congregants have forgotten the boycotts are still on — and he says Trump is in part to blame for this. 'One of the things that I learned during the Civil Rights Movement from [Rev. Jesse Jackson] and others is, you have to keep people's attention,' said Sharpton. 'But there's so much going on now, Trump and them are so good at flooding the zone. You've got to make sure people don't forget, 'I'm not supposed to be shopping at that store.' Keeping public attention is a challenge.' But even with congregants who are engaged in the battle to retain diversity commitments across the country, Adam Clark, associate professor of theology at Xavier University, said the church cannot carry the burden alone, especially when the president has taken a stance. 'The attack on DEI is so much broader than the specific companies,' said Clark. 'Trump is the culmination of all this type of white aggression against DEI. He has the authority to implement what's been going on in certain parts of the country and he makes it federal law, and I don't think the church by itself has the capacity to just overturn everything that's happening.'
