June 30 (UPI) — Home Depot on Monday announced an agreement to buy GMS, a leading specialty building products distributor.
The deal, which is expected to be completed in 2026, will see Home Depot acquire GMS for $4.3 billion as it aims to draw in more sales from contractors and other home professionals.
GMS is a distributor of specialty products which include drywall, ceilings, steel framing and other products related to construction and remodeling projects in residential and commercial end markets.
“We are excited to join with SRS and The Home Depot, and we believe this transaction delivers significant value to our customers, suppliers and team,” said president and CEO of GMS, John C. Turner, Jr.
GMS shares were up more than 11%, while Home Depots’ rose slightly in early trading.
Home Depot subsidiary SRS distribution will buy all shares of GMS for $110, as part of the deal, the company said. The total enterprise value is approximately $5.5 billion.
“The combination of GMS and SRS will provide the residential and commercial Pro customer with more fulfillment and service options than ever before. Together, we’ll create 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,” said CEO of SRS, Dan Tinker. “GMS is an industry leader with a proven track record of growth, and we look forward to welcoming the entire GMS team to SRS and capturing the exciting opportunity ahead.”
The GMS acquisition is expected to be completed by early 2026, Home Depot said.