Michelle Chapman, AP Business Writer
Home Depot is purchasing specialist building products distributor GMS for $4.3 billion. This is the second notable acquisition in over a year, highlighting the deliberate push to the supply of buildings and materials by the home improvement chain.
The acquisition arrives as booming sales from Pandemic Fade and Home Depot focus on professional builders.
GMS Inc. of Tucker, Georgia is a distributor of specialized building products such as Drywall, Steel Framing, and other equipment used in both residential and commercial projects.
A subsidiary of Home Depot’s SRS Distribution Inc., a supplier purchased last year, will begin a cash tender offer to purchase all outstanding shares of GMS at $110 per share. The total transaction amounts to approximately $4.3 billion. The transaction is worth around $5.5 billion, including debt.
Home Depot has purchased SRS distribution, a material provider for professionals, for over $18 billion, including debt. SRS provides material to professionals such as roofers, landscapers, and pool contractors.
“The combination of GMS and SRS provides residential and commercial professional customers with more fulfillment and service options than ever,” SRS CEO Dan Tinker said in a statement. “Together we’ll create a network of over 1,200 locations and a fleet of over 8,000 trucks that can deliver tens of thousands of on-site delivery per day.”
Atlanta-based Home Depot moved quickly to win GMS and made fewer own bids two weeks after QXO provided $5 billion, according to regulatory filings. Billionaire Brad Jacobs is CEO of QXO and was created to snap companies in the building supply division. In April, QXO completed its acquisition of approximately $11 billion in beacon roof supply.
The GMS transaction with Home Depot is expected to close by the end of fiscal year 2025. GMS shares jumped nearly 12% at the opening bell. Home Depot’s shares fell slightly.
Original issue: June 30th, 2025 10:45am EDT
