Home Depot acquires specialty distributor GMS for $4.3 billion
- Home Depot is finalizing an agreement to purchase GMS, a building products distributor.
- The acquisition, worth roughly $4.3 billion, is partly aimed at enhancing service to professional contractors.
- The merger is expected to create a substantial network and improve delivery capabilities in the construction market.
In the United States, Home Depot announced a significant acquisition of GMS, a notable specialty building products distributor, on June 30, 2025. This deal, valued at approximately $4.3 billion, aims to enhance Home Depot's engagement with professional contractors, bolstering its market position in the construction sector. Furthermore, Home Depot's subsidiary, SRS Distribution, will execute a cash tender offer to acquire all outstanding shares of GMS at $110 per share. The acquisition, which is projected to close by the end of fiscal 2026, is expected to create a network of over 1,200 locations and a fleet of more than 8,000 trucks, increasing delivery capabilities significantly. This merger will also integrate GMS's established industry presence with SRS Distribution's resources, allowing the combined entity to provide enhanced services to residential and commercial clients. John C. Turner, Jr., president and CEO of GMS, expressed optimism about the merger, emphasizing the value it will bring to customers, suppliers, and employees. As a result of the announcement, GMS shares surged by over 11% in pre-market trading, while Home Depot's shares experienced a minor decline of less than 1%. The deal aligns with Home Depot's strategy to attract more sales from contractors and other home professionals, continuing its expansion in the building products market. Last year, Home Depot had already undertaken a major acquisition of SRS Distribution for approximately $18.25 billion, which included debts. The successful integration of the GMS acquisition is anticipated to uphold this growth trajectory and ensure enhanced service delivery in the competitive market. With strong demand from professional contractors and builders, the merger is timely as it aims to capitalize on the growing construction and renovation market in the United States. The overall enterprise value of the transaction, estimated at around $5.5 billion including debt, reflects the confidence in GMS's market standing and future prospects. The plan to finalize the acquisition by early 2026 underscores Home Depot's commitment to improving its logistical capabilities and solidifying its position as a leading supplier in the industry.