Additional Coverage:
Home Depot to Acquire Building-Products Distributor GMS for $4.3 Billion
Home Depot is bolstering its presence in the professional contractor market with a significant acquisition. The home improvement giant announced Monday that its subsidiary, SRS Distribution, will acquire GMS, a leading distributor of building products, for approximately $4.3 billion. The deal values GMS at $110 per share, representing a total enterprise value, including net debt, of roughly $5.5 billion.
This acquisition marks another step in Home Depot’s strategy to capture a larger share of the professional contractor market. By providing a wider range of supplies and services to builders, remodelers, and other professionals, Home Depot aims to generate consistent growth. This strategy was also the driver behind last year’s acquisition of SRS Distribution for $18.25 billion.
The deal effectively ends a potential bidding war between Home Depot and billionaire Brad Jacobs, whose company, QXO, had previously offered $5 billion for GMS.
The acquisition is expected to close in early 2026. Following the announcement, Home Depot shares dipped slightly, while GMS shares surged over 11%, reaching a 52-week high.