Building supply giant The Home Depot has locked another major link in its supply chain, announcing Monday its $5.5 billion acquisition of GMS Inc., a wholesale distributor of dry wall, steel framing and other building products based in Georgia.
The Atlanta-based is acquiring GMS through its specialty trade subsidiary, SRS Distribution, another wholesaler acquired by Home Depot last year for $18.25 billion. The GMS acquisition fits with Home Depot’s expanding emphasis on its Home Depot Pro distribution channel aimed at contractors, homebuilders and industrial supplies.
Under terms of the deal, an SRS subsidiary will pay $110 per share for each share of GMS common stock, implying an equity value of $4.3 billion and an enterprise value $5.5 billion, including debt. The offer includes a 36 percent premium over the unaffected GMS share price as of June 18.
Financial advisors on the deal include BofA Securities and J.P. Morgan for Home Depot and Jefferies for GMS.
On the legal side, Weil Gotshal & Manges advised The Home Depot with an all-New York team led by Michael Aiello and Michelle Sargent. Alston & Bird advised GMS.
Dustin Gunderson is the senior vice president and general counsel for McKinney-based SRS. Craig Apolinsky, a graduate of the University of Texas School of Law, is the general counsel for GMS.
The deal is expected to close by the end of Home Depot’s fiscal year at the end of January 2026 and will be paid through cash on hand.
Ted Decker, chair, president and CEO of The Home Depot, said the deal reflects the success of the SRS acquisition last year.
“The Home Depot acquired SRS as a platform for growth, and SRS continues to demonstrate exceptional execution and strong performance,” Decker said. “In the 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.”
GMS was founded in 1971 as Gypsum Management & Supply and now maintains a network of more than 320 distribution centers.