GMS Inc. (NYSE: GMS), a leading North American specialty building products distributor, has entered into a definitive agreement with The Home Depot® to be acquired by its specialty trade distribution subsidiary, SRS Distribution. Under the terms of the agreement, a subsidiary of SRS will commence a tender offer to acquire all outstanding shares of GMS common stock for $110.00 per share, totaling approximately $5.5 billion.
The $110.00 per-share consideration represents a premium of approximately 36% to GMS’ unaffected share price as of June 18, 2025. If the tender offer is successfully completed, a wholly owned subsidiary of SRS will merge with and into GMS, with The Home Depot expecting to fund the transaction through cash on hand and debt. The transaction is expected to close by the end of The Home Depot’s current fiscal year, subject to customary closing conditions, including regulatory approvals and the tender of a majority of the shares of GMS common stock then outstanding.
GMS, founded in 1971, operates a network of more than 320 distribution centers with extensive product offerings of wallboard, ceilings, steel framing, and complementary construction products, along with nearly 100 tool sales, rental, and service centers, providing a comprehensive selection of building products and solutions for its residential and commercial contractor customer base across the United States and Canada.
The Home Depot, the world's largest home improvement specialty retailer, operates more than 2,350 retail stores, over 800 branches, and more than 325 distribution centers, employing over 470,000 associates. The company's stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones Industrial Average and Standard & Poor's 500 Index.
SRS Distribution, founded in 2008 and headquartered in McKinney, Texas, has become one of the fastest-growing building products distributors in the United States, operating more than 800 locations across 48 states.
The acquisition will lead to the combination of GMS and SRS, providing residential and commercial professional contractor customers with more fulfillment and service options than ever before, creating 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. John C. Turner Jr., President and Chief Executive Officer of GMS, and GMS’ senior leadership team, will continue to lead GMS as part of the SRS organization. As a result of these announcements, the company's shares have moved 11.8% on the market, and are now trading at a price of $108.82. For the full picture, make sure to review GMS's 8-K report.
