Home Depot has made a significant move into the building supply business with its acquisition of specialty building products distributor GMS Inc. The deal, valued at approximately $5.5 billion, including debt, marks the second notable acquisition in nearly a year as Home Depot intensifies its focus on professional builders.
GMS, based in Tucker, Georgia, is a leading distributor of specialty building products such as drywall, steel framing, and other supplies used in both residential and commercial projects. The company’s assets will be merged with those of SRS Distribution Inc., a materials provider for professionals acquired by Home Depot last year.
The acquisition is expected to provide the Pro customer with more fulfillment and service options than ever before, according to Dan Tinker, CEO of SRS Distribution. With over 1,200 locations and 8,000 trucks, the combined entity will be capable of making tens of thousands of jobsite deliveries per day.
Home Depot’s move into the building supply business comes as sales from the pandemic fade, and the company seeks to expand its offerings to professional builders. The deal is set to close by the end of fiscal 2025, with shares of GMS jumping nearly 12% at the opening bell.
Source: https://apnews.com/article/home-depot-gms-srs-c47328567c7a8c175d1c18b1ebd9166f