Home Depot is giving federal regulators more time to scrutinize its planned $5.5 billion purchase of GMS Inc., delaying the closing of one of the biggest building materials deals of the year.
The retailer last week withdrew and refiled its merger notice with the U.S. Department of Justice, resetting the antitrust review period until Aug. 22. The move extends its $110-a-share cash tender offer — originally set to expire late Friday, Aug. 8 — by two weeks. All other terms remain unchanged.
The deal, announced in June, will be completed through Home Depot’s specialty distribution arm, SRS Distribution Inc., and includes $4.3 billion in equity value plus GMS’s net debt. Both companies’ boards unanimously approved the agreement.
If approved, the acquisition would create a powerhouse in professional building materials distribution. GMS’s 300-plus branches across the U.S. and Canada would join forces with SRS’s national network, giving Home Depot control of more than 1,200 locations and a fleet of 8,000 trucks.
“This acquisition accelerates SRS’s strategy to become a leading multi-category building materials distributor,” SRS CEO Dan Tinker said when the deal was announced.
GMS, headquartered in Tucker, Georgia, is a leading supplier of drywall, ceilings, and steel framing, with $5.6 billion in revenue last fiscal year. CEO John C. Turner Jr. and his leadership team are expected to stay on after the sale.
As of Aug. 6, 34.7% of GMS shares had been tendered. The companies still expect the deal to close by the end of Home Depot’s fiscal 2025, pending regulatory approval.
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