Home Depot Inc. has received clearance from the Canadian Competition Bureau for its $5.5 billion tender offer to acquire building materials distributor GMS Inc., clearing the last major regulatory hurdle for the transaction.
The company launched the offer through its wholly owned subsidiary, Gold Acquisition Sub Inc., after signing a merger agreement with GMS on June 29. The offer values GMS at $110 per share in cash and requires most GMS shares to be tendered. The tender offer is set to expire on Sept. 3, unless extended or terminated.
U.S. antitrust clearance was granted earlier when the Department of Justice approved early termination of the waiting period under the Hart-Scott-Rodino Act. Home Depot had temporarily withdrawn and refiled its merger notice to allow regulators additional review time, extending the tender deadline.
The acquisition would combine GMS’s more than 300 branches with Home Depot’s SRS Distribution network, which operates 900 locations and 8,000 trucks.
GMS, based in Tucker, Georgia, reported $5.6 billion in revenue in its last fiscal year. CEO John C. Turner Jr. and the company’s leadership team are expected to remain after the deal closes.
As of Aug. 6, approximately 34.7% of GMS shares had been tendered. Home Depot said it expects to complete the transaction by the end of fiscal 2025, pending final regulatory and shareholder approvals.
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