Home Depot has agreed to buy GMS Inc., a building-products company, for approximately $5.5 billion. The acquisition will merge GMS’s drywall and steel-frame products with Home Depot’s SRS Distribution unit, which specializes in roofing, landscaping, and pool-products.
The move aims to increase Home Depot’s market share in the construction industry, where materials are typically supplied on a project-by-project basis. By expanding its product offerings, Home Depot hopes to become a more attractive option for builders and contractors.
The deal is part of Home Depot’s strategy to scale up its building-products business and capitalize on the growing demand for construction materials. With this acquisition, Home Depot will gain access to new markets and customers, further solidifying its position as a leading player in the home-improvement industry.
Source: https://www.marketwatch.com/story/why-home-depot-is-spending-5-5-billion-to-buy-another-building-products-company-82090c77