QXO (QXO) aims to quickly establish itself as a leader in the building products distribution industry, and GMS is a "logical building block" to that effort, Oppenheimer said in a report Friday.

QXO is aggressively expanding in the building products distribution market by proposing to acquire GMS (GMS), following its recent purchase of Beacon Roofing Supply (BECN), the report said.

QXO's strategy, led by founder and Chief Executive Brad Jacobs, involves applying a "historically proven playbook to drive organic growth, acquisitive growth, and margin expansion within the building products distribution industry," Oppenheimer said.

The proposed acquisition values GMS at about $4.9 billion, including the assumption of about $1.2 billion in net debt as of April 30. QXO is offering $95.20 per share in cash for all outstanding shares of GMS, the report said.

Oppenheimer has an outperform rating on QXO with a price target of $27.

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