SRS Distribution, The Home Depot specialty trade distribution subsidiary, is acquiring GMS Inc. a building products distributor, as the retailer continues to boost its ability to service building and renovation professionals.
To grow its share of wallet with contractors, Home Depot is building differentiated offerings and capabilities to better serve pros across projects from large, complex jobs to smaller renovations and repairs, the company noted. In 2024, Home Depot acquired SRS to establish itself as a specialty trade distributor across multiple verticals including roofing, landscaping and pool supplies.
The GMS acquisition will accelerate SRS plans to become a leading multi-category building materials distributor, Home Depot maintained, adding a new vertical that is adjacent to its existing business. GMS distributes drywall, ceilings, steel framing and other products related to residential and commercial construction and remodeling. GMS brings differentiated capabilities, product categories and customer relationships that are highly complementary to the SRS business while broadening the Home Depot subsidiary’s distribution footprint across the U.S. and Canada.
Under the terms of the merger agreement, a subsidiary of SRS will make a cash tender offer to purchase all outstanding shares of GMS common stock for $110 per share for a total equity value of $4.3 billion and implying a total enterprise value including net debt of $5.5 billion.
“The Home Depot acquired SRS as a platform for growth, and SRS continues to demonstrate exceptional execution and strong performance,” said Ted Decker, chair, president and CEO of The Home Depot. “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. This success gives us confidence that the addition of GMS to the SRS platform will allow us to create even greater value for our customers.”
