The Home Depot announced that it has completed the acquisition of GMS Inc. just days ago on September 4, 2025, marking a pivotal moment for the retail giant’s professional contractor strategy. This massive $5.5 billion deal represents one of the largest moves in the home improvement industry this year.
The acquisition was completed through Home Depot’s specialty trade distribution subsidiary, SRS Distribution Inc., for a total enterprise value (including net debt) of approximately $5.5 billion. GMS stands as one of the leading distributors of specialty building products, focusing on drywall, ceilings, steel framing, and complementary construction materials for both residential and commercial projects.
Strategic Expansion into Professional Markets
Ted Decker, chair, president and CEO of The Home Depot, emphasized the strategic importance of this move. “The addition of GMS further enhances SRS’s position as a leading multi-category building materials distributor, bringing differentiated capabilities, product categories and customer relationships that are highly complementary to SRS’s business today,” Decker stated.
The Home Depot acquisition builds upon the company’s 2024 purchase of SRS Distribution, creating a powerful combination that positions the retailer to serve professional contractors more comprehensively. This expansion allows Home Depot to compete more effectively with specialized distributors while leveraging its retail presence.
Transaction Details and Market Response
The tender offer for all outstanding shares of GMS common stock expired at one minute after 11:59 p.m. Eastern time on September 3, 2025, with approximately 79.5% of outstanding shares tendered at $110 per share in cash. This represents a significant premium that reflects Home Depot’s commitment to expanding its professional contractor business.
The deal structure involved Gold Acquisition Sub, Inc. merging with GMS, making GMS a direct subsidiary of SRS and an indirect wholly owned subsidiary of The Home Depot. Shareholders who didn’t tender their shares in the offer will receive the same $110 per share cash payment.
Enhanced Capabilities for Professional Contractors
GMS brings substantial assets to the Home Depot family. Founded in 1971, GMS operates a network of more than 300 distribution centers with extensive product offerings of wallboard, ceilings, steel framing and complementary products, plus nearly 100 tool sales, rental and service centers.
This network significantly expands Home Depot’s ability to serve professional contractors across their entire project lifecycle. The combination creates opportunities for cross-selling synergies and strengthens fulfillment capabilities, enabling contractors to complete projects more efficiently.
Market Position and Competition
The acquisition positions Home Depot more competitively against other building supply distributors and strengthens its position in the professional contractor market. By combining SRS’s existing operations with GMS’s specialized distribution network, Home Depot creates a more comprehensive solution for professional customers.
This strategic move addresses the growing demand from professional contractors for seamless, end-to-end project support. The enhanced distribution network allows Home Depot to capture a larger share of professional contractors’ spending across various project types and sizes.
Looking Forward
With this acquisition complete, Home Depot demonstrates its commitment to the professional contractor segment, which typically generates higher margins than DIY customers. The combined entity of SRS and GMS creates a unique value proposition in the market, offering both national scale and local market expertise.
The integration of GMS’s operations into Home Depot’s ecosystem represents a significant step toward the company’s goal of serving professionals across their entire project journey, from initial planning through completion.
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