Home Depot acquires GMS to enter professional construction market, outbidding competitor

From Yahoo Finance: 2025-07-02 00:01:00

Home Depot paid $4.3 billion to acquire building products distributor GMS, aiming to tap into the professional construction market. The move follows a trend of diversification away from DIY projects due to a slowdown in home sales and high interest rates. The acquisition gives Home Depot access to GMS’s 320 distribution centers and products like drywall and steel framing for contractors.

The acquisition was a blow to billionaire Brad Jacobs, who had launched a building products company, QXO, with plans for industry domination through mergers and acquisitions. Jacobs offered $5 billion for GMS, but Home Depot outbid him. This may force Jacobs to reevaluate his strategy and focus more on building his business organically.

Home Depot’s push into the professional construction market has been ongoing, with the acquisition of SRS Distribution last year. Together with GMS, Home Depot and SRS will have a network of over 1,200 locations and a fleet of 8,000 trucks for job site deliveries. The acquisition is part of Home Depot’s strategy to adapt to changing consumer preferences and market conditions.



Read more at Yahoo Finance: Home Depot Acquires Building Products Distributor GMS