The Home Depot Strengthens Position With Acquisition of GMS Inc. Through SRS Distribution

The Home Depot Strengthens Position With Acquisition of GMS Inc.

On September 4, 2025, The Home Depot announced the successful completion of its acquisition of GMS Inc. ("GMS") through its subsidiary, SRS Distribution Inc. ("SRS"). The total enterprise value of this deal, including net debt, is around $5.5 billion. GMS is recognized as a leading distributor of specialty building products like drywall, ceilings, and steel framing, serving both residential and commercial markets. This acquisition aims to augment SRS's standing as a multi-category building materials distributor by leveraging GMS's product offerings and customer relationships.

Ted Decker, the chair, president, and CEO of The Home Depot, stated, "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." This strategic move reflects The Home Depot's ongoing commitment to expanding its services tailored to professional contractors (nicknamed "Pros"). The company aims to extend its reach to the Pro clientele by offering comprehensive solutions that cater to projects ranging from large-scale jobs to smaller renovations.

The synergy created by the merger of SRS and GMS enhances The Home Depot's potential to serve professional contractors more effectively. The Home Depot had acquired SRS in 2024 and has since been focused on enhancing its capabilities and executing a solid performance in the building products distribution sector. Now, with the addition of GMS, the company anticipates creating new fulfillment options and streamlined services that would greatly benefit contractors looking to complete their projects promptly.

As per the tender offer, which expired at 12:00 AM Eastern Time on September 3, 2025, a total of 30,337,823 shares of GMS common stock were validly tendered, equating to approximately 79.5% of the outstanding shares. The Home Depot has agreed to pay $110 per share in cash for those validly tendered shares, and through this process, GMS is now an indirect subsidiary of The Home Depot, becoming a key player within the SRS Distribution portfolio.

In conjunction with the merger, all remaining GMS shares not tendered in the offer have been converted into the right to receive the same cash payment per share, ensuring equitable treatment for all shareholders. This acquisition aligns well with The Home Depot's vision of establishing a more holistic service model for contractors, thereby diversifying its offerings within the building materials sector.

About The Home Depot

The Home Depot is recognized as the world's largest home improvement specialty retailer. At the close of the second quarter of 2025, the company boasted over 2,353 retail stores, more than 800 branches, and over 325 distribution centers serving customers across the United States and beyond. The Home Depot employs a workforce of over 470,000 associates and is publicly traded on the New York Stock Exchange under the ticker symbol HD, making it a stalwart in the Dow Jones industrial average and the Standard & Poor's 500 index.

About SRS Distribution

Founded in 2008 and based in McKinney, Texas, SRS Distribution has rapidly grown into one of the foremost building products distributors in the United States. With over 800 locations across 48 states, SRS employs a unique growth strategy focused on delivering exceptional service and partnering with leading suppliers while attracting top talent in the industry.

About GMS

Established in 1971, GMS operates over 300 distribution centers, specializing in products such as wallboard, ceilings, and steel framing. Additionally, GMS manages nearly 100 tool sales and rental centers, providing an extensive range of products for both residential and commercial contractors. The company's innovative operating model expertly balances national efficiency with a local market focus, ensuring both scalability and above-average customer service.

The successful integration of GMS with SRS is expected to bring forth enhanced service offerings, further driving The Home Depot's growth and adaptability within the dynamic building materials market.