The Home Depot to Acquire GMS for $4.3B in Bid to Win More Pro Customers

The Home Depot announced Monday that it is buying GMS, a building products distributor, for about $4.3 billion as the retailer moves to draw more sales from contractors and other home professionals. As part of the deal, The Home Depot-owned subsidiary SRS Distribution will purchase all outstanding shares of GMS for $110 per share, which adds up to about $4.3 billion and amounts to total enterprise value including net debt of about $5.5 billion, the company said. The home improvement retailer said it expects the acquisition to be completed by early 2026.

Total Retail's Take: The Home Depot has made a concerted effort to bring more pro customers — e.g., electricians, roofers, plumbers, carpenters, home renovators and other professionals who tackle large projects year-round — into its fold with strategic acquisitions. For example, the Atlanta-based retailer bought SRS Distribution — the subsidiary that’s acquiring GMS — last year for $18.25 billion, in the largest acquisition in its history. The GMS purchase follows in that pattern. The reason for this targeted acquisition strategy aligns with a slowdown in the DIY customer market, with higher mortgage rates leading to decreased housing turnover and lessening homeowner demand for larger projects because of higher borrowing costs. With one area of its business under pressure (DIYers), The Home Depot is pivoting to grow its market share within another area of its business, pro customers.