Home Depot’s subsidiary SRS Distribution is buying GMS, a building products distributor, for approximately $4.3 billion. The deal aims to attract sales from contractors and other home professionals as the retailer seeks to capitalize on slower DIY market growth.
The acquisition is part of Home Depot’s strategy to target professionals who require large supplies for year-round projects. By acquiring GMS, the company hopes to expand its presence in the landscaping, roofing, and pool industries.
GMS shares rose 12% following the announcement, while Home Depot stock fell nearly 1%. The deal is expected to close by early 2026, marking a significant move for the home improvement giant as it pursues growth opportunities.
This acquisition comes amid a potential bidding war between Home Depot and billionaire Brad Jacobs’ QXO. However, Home Depot’s focus on selling to professionals appears well-timed, given the current market conditions. The company expects total sales to grow by 2.8% for the full fiscal year, with comparable sales rising about 1%.
Source: https://www.cnbc.com/2025/06/30/home-depot-srs-distribution-buys-gms.html