In a bold move that echoes through the construction supply chain, Home Depot announced Monday that its trade distribution arm, SRS Distribution Inc., will acquire GMS Inc. in a $5.5 billion deal, including debt. The all-cash offer values GMS equity at approximately $4.3 billion, translating to $110 per share — a premium that sent the stock soaring over 11% in early trading.
The acquisition marks another leap in Home Depot’s aggressive strategy to rule the specialty building products space after its 2023 blockbuster purchase of SRS for $18.25 billion, aimed at gaining control over roofing, landscaping, and pool supply channels.
“We’re building a supply chain behemoth,” said Ted Decker, CEO of Home Depot. “With GMS, we’ll deliver even more value to our professional customers.”
The New Blueprint: Scale and Speed
Under the agreement, an SRS subsidiary will launch a cash tender offer to scoop up all outstanding GMS shares, solidifying Home Depot’s push beyond retail into full-spectrum trade distribution. The deal is expected to close by fiscal 2025, contingent on regulatory approval and a majority tender of GMS stock.
GMS, a major distributor of drywall, ceilings, and steel framing across the U.S. and Canada, offers an adjacent vertical to SRS’s product lines — a fit that Decker said will “accelerate SRS’s vision of becoming a leading, multi-category distributor.”
Dan Tinker, CEO of SRS, painted a picture of massive operational synergy:
“We’re talking about over 1,200 locations and a fleet of 8,000 trucks — ready to make tens of thousands of jobsite deliveries every day. That’s scale with horsepower.”
