The Home Depot has made an offer for building-products distributor GMS, setting up a potential bidding war with serial dealmaker Brad Jacobs, according to the Wall Street Journal, citing people familiar with the matter.

On June 18, Jacobs’ QXO said it submitted an unsolicited proposal to buy GMS for approximately $5 billion, offering $95.20 a share in cash. Home Depot has not revealed the price it is considering for GMS.

Tucker, GA-based GMS operates over 320 distribution centers offering wallboard, ceilings, steel framing and other construction materials. It also runs about 100 locations for tool sales, rentals and service, serving residential and commercial contractors.

According to the WSJ, both Home Depot and QXO are aiming to gain share in the fragmented construction supplies market, betting that scale and improved technology will help win more business from contractors.

The WSJ added that both companies see long-term U.S. housing demand as a growth driver, despite tariffs and economic pressures that have weighed on GMS this year.

Home Depot acquired SRS Distribution last year for $18.25 billion, including debt, accelerating its growth with the residential professional customer, allowing it to better serve the “complex purchase occasion.”

GMS shares jumped 23% in premarket trading Friday, after rising 10% on Wednesday. Home Depot shares recently dipped 0.5%, while QXO rose nearly 3%.