Home Depot has closed its $5.5 billion purchase of GMS Inc., bringing the specialty building products distributor under its SRS Distribution subsidiary and further expanding its push into the professional contractor market.
The deal, first announced in June, gives Home Depot control of one of the nation’s leading suppliers of drywall, ceilings, steel framing, and other construction materials for residential and commercial projects. GMS is now a direct subsidiary of SRS and an indirect, wholly owned unit of Home Depot.
The acquisition was finalized after a tender offer for GMS shares expired late Tuesday. About 30.3 million shares, or 80% of GMS’s outstanding stock, were tendered at $110 per share in cash. Remaining shares will also be converted to the same cash consideration.
“The addition of GMS further enhances SRS’s position as a leading multi-category building materials distributor,” said Ted Decker, Home Depot’s chair, president and CEO. “We want to serve the Pro across their entire project, and the combination of SRS and GMS will enable cross-selling synergies, strengthen our capabilities, and bring even more opportunities to gain experience with this important customer.”
Home Depot has been ramping up investments in its professional customer base, which now represents more than half of company sales. The retailer acquired SRS in 2024, adding a fast-growing distribution network with more than 800 branches across 48 states. The integration of GMS, executives said, will expand fulfillment options and improve service for contractors working on projects ranging from large commercial builds to small renovations.
Home Depot operates 2,353 retail stores, more than 325 distribution centers, and employs about 470,000 people across North America.
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