# EDGAR Filing Document

**Accession Number:** 0001236275
**File Stem:** 0000950142-25-001646
**Filing Date:** 2025-6
**Character Count:** 17792
**Document Hash:** 61d693d6f9324ba25df6f7d4fd2e47d8
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950142-25-001646.hdr.sgml**: 20250620

**ACCESSION NUMBER**: 0000950142-25-001646

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20250618

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250620

**DATE AS OF CHANGE**: 20250618

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** QXO, Inc.
- **CENTRAL INDEX KEY:** 0001236275
- **STANDARD INDUSTRIAL CLASSIFICATION:** WHOLESALE-LUMBER & OTHER CONSTRUCTION MATERIALS [5030]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 161633636
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38063
- **FILM NUMBER:** 251058796

**BUSINESS ADDRESS:**
- **STREET 1:** FIVE AMERICAN LANE
- **CITY:** GREENWICH
- **STATE:** CT
- **ZIP:** 06831
- **BUSINESS PHONE:** 888-998-6000

**MAIL ADDRESS:**
- **STREET 1:** FIVE AMERICAN LANE
- **CITY:** GREENWICH
- **STATE:** CT
- **ZIP:** 06831

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SilverSun Technologies, Inc.
- **DATE OF NAME CHANGE:** 20110803

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** TREY RESOURCES INC
- **DATE OF NAME CHANGE:** 20050923

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** TREY INDUSTRIES INC
- **DATE OF NAME CHANGE:** 20030528

?xml version='1.0' encoding='ASCII'? FORM 8-K

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **June 18, 2025**

**QXO, INC.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-38063** | **16-1633636** |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |

---

---

| | |
|:---|:---|
| **Five American Lane<br> Greenwich, Connecticut**<br> (Address of principal executive offices) | **06831**<br> (Zip Code) |

---

Registrant's telephone number, including area code: **888-998-6000**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common stock, par value $0.00001 per share | QXO | New York Stock Exchange |
| Depositary Shares, each representing a 1/20th interest in a share of 5.50% Series B Mandatory Convertible Preferred Stock, par value $0.001 per share | QXO.PRB | New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

---

| | |
|:---|:---|
| **Item 8.01** | **Other Events.** |

---

On June 18, 2025, QXO, Inc. (the "Company" or "QXO") issued a press release announcing that it sent a proposal to the President and CEO of GMS Inc. ("GMS") to acquire all outstanding shares of GMS common stock for $95.20 per share in cash. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

---

| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Exhibits.

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | [Press Release, dated June 18, 2025.](eh250644173_ex9901.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
|  | **QXO, INC.** | **QXO, INC.** | **QXO, INC.** |
| Date: June 18, 2025 | By: | /s/ Christopher Signorello | /s/ Christopher Signorello |
|  |  | Name: | Christopher Signorello |
|  |  | Title: | *Chief Legal Officer* |

---

## Exhibit 99.1

**EXHIBIT 99.1**

![QXO, INC. Logo](image_001.jpg)

**QXO Proposes to Acquire GMS for $95.20 Per Share in Cash**

**GREENWICH, Conn. — June 18, 2025** — QXO, Inc. (NYSE: QXO) today sent a proposal to the President and CEO of GMS Inc. (NYSE: GMS) to acquire all outstanding shares of GMS for $95.20 per share in cash. The proposal implies a total transaction value of approximately $5 billion and reflects a 27% premium over GMS's 60-day volume-weighted average price of $74.82.

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

Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC are acting as financial advisors to QXO, and Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal counsel.

QXO sent the following letter to GMS's President and CEO today outlining the terms and rationale of the proposal:

**GMS, Inc.**<br> 100 Crescent Parkway, Suite 800<br> Tucker, GA 30084

**<u>Attention</u>:** John Turner, President and Chief Executive Officer

June 18, 2025

Dear JT,

Thank you for taking the time to meet with me in New York last month. I enjoyed our conversation and learning more about GMS, Inc. ("**GMS**" or the "**Company**").

As you know, we at QXO, Inc. ("**QXO**") have been studying GMS for over a year and have developed conviction around our interest in the Company. We are prepared to acquire 100% of GMS in a $95.20 per share all-cash transaction (the "**Transaction**"). This letter contains the summary terms of our acquisition proposal (the "**Offer**").

Our Offer will deliver immediate cash to GMS shareholders at a compelling valuation. We have no doubt that our Offer will receive widespread support from GMS's shareholders.

**1. Investment Thesis and GMS Underperformance**

Our conviction in acquiring GMS is supported by its attractive positions in wallboard, ceiling tile and steel framing, extensive distribution network and broad exposure to both residential and commercial end markets.

Despite the opportunity available to GMS, the Company's financial performance has been underwhelming. The Company's disappointing results have been reflected in your share price performance and public market valuation:

&nbsp;&nbsp;&nbsp;&nbsp;• **GMS's EBITDA declined** at a 4.0% annual
clip over the last three years, much worse than its peers,<sup>1</sup> which achieved a median annual increase of 4.6% over the same
period;

&nbsp;&nbsp;&nbsp;&nbsp;• **GMS's EBITDA margin declined** 315
basis points from FY2022-FY2025, to 9.1% from 12.2%, a 26% drop. This compares unfavorably to peers, which reported a median 89 basis
points decline in EBITDA margin during this same period;

&nbsp;&nbsp;&nbsp;&nbsp;• **GMS has missed EBITDA, EBIT and EPS estimates** for four of the last five quarters, on average missing EBITDA by 7%, EBIT by 25% and EPS by 9% in this period;

&nbsp;&nbsp;&nbsp;&nbsp;• **GMS has underperformed the S&P 500** by nearly 1,900 basis points over the last 12 months; and

&nbsp;&nbsp;&nbsp;&nbsp;• **Sell-side analysts have lost confidence in GMS** – the median analyst 12-month price target has been reduced to $80 per share<sup>2</sup> from $105 per share only a year
ago.

This underperformance has been frustrating for your shareholders.

**2. Business Deterioration**

Since we first met with you in June 2024, GMS's outlook has deteriorated materially. Sell-side analysts expected GMS to deliver EBITDA of $624 million for the 12-month period ending April 2025. Instead, you delivered just $501 million and today sell-side analysts expect you to deliver NTM EBITDA of $496 million. Furthermore, GMS has experienced a sharp decline in performance since then:

&nbsp;&nbsp;&nbsp;&nbsp;• **A 7% reduction in its NTM revenue** as a
result of soft end-market demand;

&nbsp;&nbsp;&nbsp;&nbsp;• **A 20% reduction in NTM EBITDA** as gross
margins have contracted across all major product lines; and

&nbsp;&nbsp;&nbsp;&nbsp;• **A 32% reduction in NTM EPS** as the overall
performance of the business has deteriorated.

**3. Compelling Financial Terms of Our Offer**

Today, we propose to acquire GMS for $95.20 per share in cash. This is a full and compelling offer at the high end of our valuation range. It represents a substantial premium to your intrinsic value. Our Offer is a:

&nbsp;&nbsp;&nbsp;&nbsp;• 29% premium to the Company's stock price
of $73.74 per share as of market close on May 22, 2025, the day you and I met in New York;

&nbsp;&nbsp;&nbsp;&nbsp;• 27% premium to the Company's 60-day VWAP
of $74.82 per share (as of market close on June 18, 2025);

&nbsp;&nbsp;&nbsp;&nbsp;• 19% premium to the median 12-month sell-side analyst
price target of $80.00 per share as of June 18, 2025; and

&nbsp;&nbsp;&nbsp;&nbsp;• 2.9x premium to GMS's three-year historical
average next-twelve-months enterprise value to EBITDA multiple of 7.0x.

<sup>1</sup> Peer group includes the following One-Step Building Products Distribution companies within the peer group used in GMS's annual proxy statement: Beacon, Core & Main, Pool Corporation, SiteOne Landscape Supply, TopBuild and Watsco. EBITDA and EBITDA margin metrics relate to last three years ending CQ1 2025 for peers

<sup>2</sup> As of June 18, 2025 as per Bloomberg

Notably, we have observed meaningful changes in the volume and trading levels of GMS shares since our announcement to acquire Beacon Roofing Supply, Inc. ("Beacon"), which, in conjunction with what we have heard from public equity investors, indicate to us that GMS's current share price reflects demonstrable takeover speculation. Specifically, GMS's trading volume since the Beacon announcement was more than 50% higher than the average daily trading volume over the twelve months prior. With respect to the takeover speculation in the stock, we also note the steep rise in your share price following our meeting on May 22, 2025, in New York, as well as a research report by Raymond James, which resulted from a non-deal roadshow with you and your CFO, stating that GMS was a likely acquisition target and GMS's management was willing to entertain a sale. Most recently, we have heard from industry participants that J.P. Morgan and Jefferies have been aggressively marketing the Company for sale.

Your FQ4 2025 Earnings Release earlier today included an organic revenue decline of 10%, an EBITDA decline of 25% and an EBITDA margin decrease of 220 basis points each compared to the same period last year. GMS also expects FQ1 2026 flat per day volume in single family housing, 25% to 30% declines in multifamily per day volumes and low teen declines in commercial per day volumes. Despite these poor results and macro outlook, you conveniently painted a positive picture that materially moved your stock price, while at the same time you have bankers actively marketing your company. As a result, GMS stock experienced an 11% increase today, its largest single-day dollar increase ever. Even with this rise in the stock price, our Offer represents a 18% premium to today's closing price.

**4. High Certainty of Completion** 

Our Offer and our definitive agreement will not have any financing condition or contingency. We have received strong assurances from Goldman Sachs and Morgan Stanley regarding their ability to deliver fully committed financing for the Transaction. We will provide financing commitments in due course.

We do not anticipate the Transaction will give rise to any antitrust or other regulatory issues. We believe the Transaction should close in August 2025.

**5. Ready to Move Quickly** 

We are prepared to move quickly with two weeks of confirmatory due diligence, including management meetings, while we negotiate definitive transaction documentation. We are prepared to enter into a customary confidentiality agreement so long as it does not contain any standstill provision or "backdoor" standstill provision that would prevent us from taking the Offer directly to your shareholders, including as a result of us receiving material non-public information. We have retained Goldman Sachs and Morgan Stanley as our financial advisors and Paul, Weiss as our legal counsel.

**6. QXO**

Following the acquisition of Beacon, QXO is now the largest publicly traded distributor of roofing, waterproofing and complementary building products in the United States. We plan to become the leader in the $800 billion building products distribution industry and generate outsized value for shareholders. We are executing a strategy toward a target of $50 billion in annual revenues within the next decade through accretive acquisitions and organic growth.

We have the full support of our Board of Directors to pursue the Transaction. Our leadership team is highly experienced and has a proven track record of building businesses, accelerating growth through investment in technology and building scale through accretive M&A and organic growth. We also have the institutional knowledge and transaction experience to consummate the Transaction expeditiously.

7**. Conclusion**

As we've said before, we don't play games – we're straightforward and we move fast. In that spirit we have put forth a highly compelling offer at the high end of our valuation range. We have the financial capacity and deal expertise to close the Transaction swiftly and with a high level of certainty, and we're willing to commit extensive resources to complete due diligence and negotiate definitive agreements on an accelerated timeframe. Our team and our advisors are standing by.

We strongly believe that our Offer is in GMS's and its shareholders' best interests, and we also believe that your employees, vendors and customers will benefit from the significant growth opportunity provided by QXO's platform. To that end we propose that we move forward quickly, and we respectfully request that you respond to the Offer by no later than June 24, 2025. If you choose not to engage with us, or choose to engage in an unconstructive manner, we are prepared to take our Offer directly to GMS's shareholders who we're confident will find the Offer attractive.

On behalf of QXO, thank you for your consideration.

Sincerely,

Ihsan Essaid

Chief Financial Officer

ihsan.essaid@qxo.com

cc: Brad Jacobs, CEO, QXO Inc. <br> John Gavin, Chairman, GMS, Inc.

**About QXO**

QXO is the largest publicly traded distributor of roofing, waterproofing and complementary building products in the United States. The company plans to become the tech-enabled leader in the $800 billion building products distribution industry and generate outsized value for shareholders. QXO is targeting $50 billion in annual revenues within the next decade through accretive acquisitions and organic growth. Visit <u>QXO.com</u> for more information.

**Cautionary Statement Regarding Forward-Looking Statements**

The information herein contains forward-looking statements. Statements that are not historical facts, including statements about beliefs, expectations, targets and goals are forward-looking statements. These statements are based on plans, estimates, expectations and/or goals at the time the statements are made, and readers should not place undue reliance on them. In some cases, readers can identify forward-looking statements by the use of forward-looking terms such as "may," "will," "should," "expect," "opportunity," "intend," "plan," "anticipate," "believe," "estimate," "predict," "potential," "target," "goal," or "continue," or the negative of these terms or other comparable terms. Forward-looking statements involve inherent risks and uncertainties and readers are cautioned that a number of important factors could cause actual results to differ materially from those contained in any such forward-looking statements. QXO cautions that forward-looking statements should not be relied on as predictions of future events, and these statements are not guarantees of performance or results. Forward-looking statements herein speak only as of the date each statement is made. QXO does not undertake any obligation to update any of these statements in light of new information or future events, except to the extent required by applicable law.

**Media Contacts:**

Joe Checkler<br> <u>joe.checkler@qxo.com</u><br> 203-609-9650

Steve Lipin/Lauren Odell<br> Gladstone Place Partners<br> 212-230-5930

**Investor Contact**:

Mark Manduca<br> <u>mark.manduca@qxo.com</u><br> 203-321-3889