BY Richard Summerfield
The Home Depot has agreed to acquire GMS, a building-products distributor, for about $4.3bn, via its subsidiary SRS Distribution.
Under the terms of the deal, SRS Distribution will acquire all of the outstanding shares of GMS for $110 per share, which amounts to around $4.3bn. The total enterprise value of the deal, including net debt, is around $5.5bn. The $110 per-share price represents a premium of approximately 36 percent to GMS’ share price as of 18 June 2025.
Home Depot expects the deal to be completed around early 2026, subject to customary closing conditions, including regulatory approvals and the tender of a majority of the shares of GMS common stock then outstanding on a fully diluted basis. If the tender offer is successfully completed, a wholly owned subsidiary of SRS will merge with and into GMS, and all of the outstanding shares of GMS that were not tendered in the tender offer will be converted into the right to receive the same $110 per share in cash offered to GMS shareholders in the tender offer. Home Depot expects to fund the transaction through cash on hand and debt.
“The Home Depot acquired SRS as a platform for growth, and SRS continues to demonstrate exceptional execution and strong performance,” said Ted Decker, chair, president and chief executive of The Home Depot. “In our first year of working together, we’ve captured significant synergies, including cross-selling new products and service offerings to both Home Depot and SRS customers, advancing Home Depot’s enterprise trade credit program through the SRS platform, and many other initiatives designed to drive the customer value proposition and operational efficiency. This success gives us confidence that the addition of GMS to the SRS platform will allow us to create even greater value for our customers.”
“The combination of GMS and SRS will provide the residential and commercial Pro customer with more fulfillment and service options than ever before,” said Dan Tinker, chief executive of SRS. “Together, we’ll create a network of more than 1,200 locations and a fleet of more than 8,000 trucks capable of making tens of thousands of jobsite deliveries per day. GMS is an industry leader with a proven track record of growth, and we look forward to welcoming the entire GMS team to SRS and capturing the exciting opportunity ahead.”
“We are excited to join with SRS and The Home Depot, and we believe this transaction delivers significant value to our customers, suppliers and team,” said John C. Turner, Jr., president and chief executive of GMS. “Since GMS’s founding, we have never strayed from our commitment to be the best distributor in our markets and provide outstanding service for our customers. We look forward to providing an even wider breadth of product offerings and services while delivering superior value to our professional contractor customers as part of SRS and The Home Depot family. We are confident that this transaction positions GMS to capitalize on the promising opportunities ahead and accelerate our growth.”
The move for GMS is notable for Home Depot as the company is attempting to draw more sales from contractors and other home professionals. GMS, founded in 1971, operates more than 300 distribution centres offering wallboard, ceilings, steel framing and complementary products, along with nearly 100 tool sales, rental and service centres across the US and Canada. Home Depot acquired SRS Distribution in 2024 for $18.25bn, in the largest acquisition in its history. SRS sells supplies to professionals in the landscaping, roofing and pool businesses and it has bought up many other smaller suppliers in recent years.
News: Home Depot targets contractors, rivals with $4.3 billion deal for GMS