US DIY Giant Home Depot to Acquire GMS in USD 5.5 Billion Deal
- brg_news_room
- Jul 2
- 1 min read
USA: US DIY Giant Home Depot has agreed to acquire building products distributor GMS for USD 5.5 billion, including net debt. The acquisition will be integrated into Home Depot’s speciality trade distribution division, SRS Distribution. GMS, which operates more than 300 supply locations across North America, will complement SRS’s existing distribution network and capabilities in sectors including drywall, ceilings and steel framing. The move supports The Home Depot’s broader strategy to expand its offerings to professional contractors and strengthen its presence in both residential and commercial construction markets.
As part of the agreement, SRS will launch a cash tender offer to acquire all outstanding GMS shares at USD 110 per share, valuing GMS’s equity at approximately USD 4.3 billion. The acquisition will be funded through existing cash reserves and debt and is not expected to affect The Home Depot’s leverage target for fiscal 2026. GMS’s current leadership, including CEO John C Turner, will continue to operate under the SRS banner. The combined operations are projected to span more than 1,200 locations with a fleet exceeding 8,000 delivery trucks. Financial advisory support for the transaction was provided by BofA Securities and JP Morgan Securities, while legal counsel was handled by Weil, Gotshal & Manges.
Source: Yahoo Finance
