Home Depot announced Monday that it will acquire GMS Inc., a distributor of building products, for approximately $4.3 billion as part of its ongoing strategy to expand its reach among professional contractors and trade customers, CNBC reports.
The transaction will be executed through SRS Distribution, a Home Depot subsidiary that specializes in supplying professional landscapers, roofers, and pool contractors. The deal values GMS at $110 per share, bringing the total enterprise value, including net debt, to roughly $5.5 billion. Home Depot expects the acquisition to close by early 2026, pending regulatory and shareholder approvals.
The acquisition aligns with Home Depot’s broader effort to deepen its presence in the professional segment of the home improvement market. As do-it-yourself (DIY) sales have slowed — largely due to high mortgage rates and reduced home turnover — the company is looking to capture more consistent demand from builders, electricians, roofers, and other home professionals who require large-scale, year-round supplies.
“This transaction accelerates our ability to serve pros of all sizes by enhancing our specialty trade distribution capabilities,” the company said in a statement.
Home Depot’s acquisition of GMS follows its $18.25 billion purchase of SRS Distribution in 2023, the largest acquisition in the retailer’s history. SRS has since become a key vehicle for Home Depot’s professional growth strategy, acquiring smaller distributors and integrating a network of specialty suppliers across multiple trades.
The deal also marks the conclusion of a brief bidding standoff between Home Depot and QXO, a building-products distributor backed by billionaire Brad Jacobs. QXO had made a competing offer of about $5 billion in cash and had signaled willingness to pursue a hostile takeover if GMS management rejected the proposal. With GMS now agreeing to the SRS offer, the acquisition by Home Depot effectively ends that challenge.
Shares of GMS rose more than 11% following the announcement, while Home Depot’s stock remained flat in early Monday trading.
Home Depot said it anticipates total sales growth of 2.8% for the current fiscal year, with comparable sales expected to rise about 1%. The shift toward professional clients is part of the company’s plan to offset pressures facing its traditional customer base, where elevated borrowing costs have discouraged large home improvement projects.
