The Home Depot is expanding its focus on professional contractors with a $4.3 billion agreement for its SRS Distribution subsidiary to acquire GMS Inc., a specialty building products distributor. The acquisition includes drywall, ceiling, and steel framing materials used in residential and commercial construction.
The move will enhance The Home Depot’s ability to serve professional customers by creating a combined network of over 1,200 locations and 8,000 trucks, capable of making thousands of jobsite deliveries daily. This merger is expected to close by the end of the fiscal year and brings the total value of the transaction to approximately $5.5 billion when including debt.
GMS will help accelerate SRS’s expansion into multiple product categories and grow its footprint in the U.S. and Canada. This is the latest in The Home Depot’s ongoing strategy to deepen its support for pro customers, following its $18.25 billion purchase of SRS last year.
Despite a cooling housing market, The Home Depot reported $39.9 billion in Q1 net sales, with professional sales outperforming DIY. With this latest acquisition, The Home Depot aims to further streamline service options and improve operational efficiency for contractors and commercial customers nationwide.
