Acquisition sharpens focus on professional contractors
Home Depot announced Monday that it will acquire GMS, a major distributor of building products, in a $4.3 billion deal aimed at expanding its reach among professional contractors. The acquisition will be executed through SRS Distribution, a Home Depot-owned subsidiary.
Under the agreement, SRS will purchase all outstanding GMS shares at $110 per share, valuing the deal at $4.3 billion, with a total enterprise value including net debt of approximately $5.5 billion. The transaction is expected to close by early 2026.
The news sent GMS shares up over 11%, hitting a 52-week high, while Home Depot shares slipped slightly in afternoon trading.
Deal ends takeover battle, supports pro market strategy
The acquisition ends a potential bidding war with billionaire Brad Jacobs, whose QXO had made a $5 billion offer for GMS and threatened a hostile takeover if rebuffed. Home Depot’s successful bid reinforces its commitment to dominating the professional contractor market.
Professionals such as roofers, electricians, and landscapers offer Home Depot a more stable revenue stream compared to the do-it-yourself (DIY) segment, which has slowed amid higher mortgage rates and reduced home turnover. These pros tend to buy in bulk and require year-round supplies.
Strategic alignment with SRS and long-term growth
The GMS acquisition follows Home Depot’s $18.25 billion purchase of SRS Distribution last year, its largest acquisition to date. Based in Texas, SRS specializes in serving professionals across roofing, landscaping, and pool maintenance sectors. The addition of GMS will significantly expand SRS’s distribution footprint.
Home Depot said the deal is designed to accelerate its growth strategy by enhancing supply chain capabilities and offering a broader range of products to its professional clients.
Outlook remains modest despite expansion moves
Despite the aggressive expansion, Home Depot maintains a measured financial outlook. The company expects total sales to rise by 2.8% for the fiscal year, with comparable sales forecast to grow about 1%.
