Home Depot acquires GMS for $5 billion to expand building supply business

From Yahoo Finance: 2025-06-30 08:54:00

Home Depot is acquiring specialty building products distributor GMS for $4.3 billion, marking a strategic move into building and materials supply. The purchase comes amid strong pandemic sales, as Home Depot focuses on professional builders. GMS distributes products like drywall and steel framing for residential and commercial projects.

A subsidiary of Home Depot’s SRS Distribution will make a cash tender offer to purchase all outstanding shares of GMS for $110 per share, totaling approximately $4.3 billion. Including debt, the deal is valued at about $5.5 billion. Home Depot previously acquired SRS Distribution for over $18 billion, expanding materials provision for professionals.

The merger of GMS and SRS will enhance fulfillment and service options for residential and commercial Pro customers, with a network of over 1,200 locations and 8,000 trucks for daily deliveries. Home Depot swiftly outbid QXO, led by billionaire Brad Jacobs, to secure the acquisition of GMS. The transaction is expected to close by the end of fiscal 2025.

Shares of GMS surged nearly 12% following the announcement of the acquisition by Home Depot. The deal signifies a significant expansion for Home Depot into the building and materials supply sector, as the company continues to focus on meeting the needs of professional builders and customers in the industry.



Read more at Yahoo Finance: Home Depot heads deeper into the building supply business with $5 billion acquisition of GMS