Home Depot’s trade distribution subsidiary SRS Distribution has reached an agreement to buy building-products distributor GMS for $110 a share in a deal totaling $5.5 billion, the companies announced Monday.

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.

(Reuters) -Home Depot said on Monday unit SRS Distribution has agreed to acquire specialty building products distributor GMS for about $4.3 billion, stepping up its efforts to capture more demand from professional contractors. The deal also comes amid threats of a hostile takeover for GMS from billionaire Brad Jacobs-led rival QXO.