Home Depot Acquires GMS for $4.3 Billion to Expand Sales to Home Professionals
Home Depot announced the purchase of building-products distributor GMS for $4.3 billion, aiming to increase sales to contractors and home professionals. The deal, expected to be finalized by early 2026, will see Home Depot-owned SRS Distribution acquiring all outstanding shares of GMS for $110 per share. This move follows a bidding war with billionaire Brad Jacobs' QXO. Home Depot's strategy focuses on targeting electricians, roofers, and home renovators for steady growth in the home improvement sector.
Home Depot announced on Monday that it is purchasing GMS, a building-products distributor, for approximately $4.3 billion to increase sales from contractors and other home professionals. Home Depot's shares remained stable while GMS shares surged over 11%.
As part of the agreement, Home Depot's subsidiary SRS Distribution will acquire all outstanding GMS shares for $110 each, totaling about $4.3 billion with a net debt of around $5.5 billion. The acquisition is expected to be finalized by early 2026.
This acquisition marks the end of a potential bidding war between Home Depot and billionaire Brad Jacobs, who offered $5 billion through his company QXO. Home Depot aims to target electricians, roofers, and other professionals with the GMS deal, following its strategy to cater to professionals needing supplies for large projects.
Last year, Home Depot acquired SRS Distribution for $18.25 billion, focusing on serving professionals in landscaping, roofing, and pool businesses.
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