Home Depot making $4.3 billion acquisition in expansion of pro offerings

The Home Depot is expanding its pro offerings.

The Home Depot continues to expand its offerings to contractors and other home professional customers as it looks to increase its pro business.

SRS Distribution Inc., which The Home Depot purchased for about approximately $18.25 billion in June 2024, has entered into an agreement to acquire GMS Inc. a North American specialty building products distributor.  Under the terms of the transaction, a subsidiary of SRS will purchase all outstanding shares of GMS common stock for $110 per share, reflecting a total equity value of approximately $4.3 billion. and implying a total enterprise value (including net debt) of about $5.5 billion.  

The acquisition to close by early 2026.

[READ MORE: Home Depot finalizes $18 billion SRS Distribution deal]

“The Home Depot acquired SRS as a platform for growth, and SRS continues to demonstrate exceptional execution and strong performance,” said Ted Decker, Home Deport chair, president and CEO. “In our first year of working together, we’ve captured significant synergies, including cross-selling new products and service offerings to both Home Depot and SRS customers, advancing Home Depot’s enterprise trade credit program through the SRS platform, and many other initiatives designed to drive the customer value proposition and operational efficiency.”

Other steps Home Depot has taken to expand its offerings to pro customers include opening four new distribution centers geared toward serving pro customers during the first half of 2024 and acquiring Construction Resources, a distributor of design-oriented surfaces, appliances and architectural specialty products for pro contractors. 

The retailer said it intends the acquisition of GMS to accelerate SRS’s goal of becoming a leading, multi-category building materials distributor. SRS currently serves the professional roofer, landscaper and pool contractor fields, while GMS distributes specialty building products including drywall, ceilings, steel framing and other complementary products related to construction and remodeling projects in residential and commercial end markets across the U.S. and Canada.

“The combination of GMS and SRS will provide the residential and commercial Pro customer with more fulfillment and service options than ever before,” said said Dan Tinker, CEO of SRS. “Together, we’ll create a network of more than 1,200 locations and a fleet of more than 8,000 trucks capable of making tens of thousands of jobsite deliveries per day.”