Home Depot heads deeper into the building supply business with $5 billion acquisition of GMS

By MICHELLE CHAPMAN AP Business Writer Home Depot is buying specialty building products distributor GMS for billion the second notable acquisition in a little over a year that emphasizes a deliberate push by the home improvement chain into building and materials supply The acquisitions arrive as booming sales from the pandemic fade and Home Depot intensifies its focus on professional builders GMS Inc of Tucker Georgia is a distributor of specialty building products like drywall steel framing and other supplies used in both residential and commercial projects A subsidiary of Home Depot s SRS Distribution Inc the supply company it bought last year will start a cash tender offer to buy all outstanding shares of GMS for per share The total equity value of the transaction is approximately billion The deal is worth about billion including debt Home Depot purchased SRS Distribution a materials provider for professionals for more than billion including debt SRS provides materials for professionals like roofers landscapers and pool contractors Related Articles Massachusetts gas prices tick down ahead of busy July th holiday advance week US stocks add to their all-time high How you can thrive in the workplace How to manage ADHD at work and turn it into a strength Perks at work Highlighting summer Fridays The combination of GMS and SRS will provide the residential and commercial Pro customer with more fulfillment and operation options than ever before SRS CEO Dan Tinker revealed in a message Together we ll create a structure of more than locations and a fleet of more than trucks capable of making tens of thousands of jobsite deliveries per day Home Depot based in Atlanta moved fast to acquire GMS putting in its own bid less that two week after the company QXO offered billion according to a regulatory filing Billionaire Brad Jacobs is the CEO of QXO which was created to snap up companies in the building supply sector In April QXO completed its approximately billion acquisition of Beacon Roofing Supply The GMS transaction with Home Depot is expected to close by the end of fiscal Shares of the GMS jumped nearly at the opening bell Home Depot shares declined slightly