Home Depot Acquires GMS in $5.5B Acquisition
Home Depot stated on Thursday, September 4, that it has finalized a $5.5 billion acquisition of building supply distributor GMS Inc. as part of its ongoing efforts to attract more business from professional contractors.
The transaction was initially announced in June by the home improvement retailer, which is headquartered in Atlanta, Georgia.
Through its subsidiary, SRS Distribution Inc. – the roofing distributor it purchased in a massive $18 billion deal in March 2024 – Home Depot completed the GMS acquisition.
Both distributors, GMS and SRS, will provide “more fulfillment and service options” to qualified contractors, according to a news release from Home Depot.
Home Depot President and CEO Edward “Ted” Decker stated in a press release that the company’s goal is “to serve the Pro through their entire project.” He emphasized that the acquisition supports the company’s long-term strategy to capture a larger share of the professional market, also known in the industry as “the Pro segment.”
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GMS: What is it?
According to Home Depot, Gypsum Management & Supply (GMS) is a wholesale distributor of specialty building materials, including steel framing, drywall, and ceiling products. The company supplies materials for both residential and commercial construction projects.
The news release also stated that GMS offers a broader range of products for construction and remodeling projects, helping Home Depot expand its ability to meet the needs of large-scale contractors, custom builders, and construction firms.
According to the GMS website, GMS states that it was founded in 1971 and now has over 300 distribution sites across the U.S. and Canada. The company has grown steadily over the years through a mix of acquisitions and organic expansion, becoming one of the most prominent players in the building materials distribution industry.
While the deal positions Home Depot to enhance its Pro offerings significantly, it remains unclear whether any Home Depot centers or GMS locations will close as a result of the acquisition. No store closures or layoffs have been announced at this time.
Strengthening Home Depot’s Pro Business
Home Depot has been making aggressive moves to capture more of the professional contractor market, a segment that now accounts for over half of its total revenue. Unlike DIY shoppers, Pro customers often purchase in larger volumes, require specific delivery timelines, and need access to a broader selection of specialized products.
The company continues to strengthen its efforts to attract and retain these high-value customers by investing in logistics, fulfillment, and personalized support. The acquisition of both SRS and GMS signals a clear shift in strategy toward becoming a comprehensive one-stop shop for contractors and construction professionals.
In a press release, Home Depot highlighted its focus on “raising its share of wallet” with professional contractors and announced the conclusion of the transaction.
“The company is building unique offerings and abilities to better serve Pros throughout every aspect of their project – from large, complicated assignments to smaller renovations and repairs,” according to the statement.
Structure of the Deal
The company stated that SRS Distribution would continue to function as a separate entity within Home Depot at the time of its acquisition. This operational independence allows SRS – and now GMS – to retain their specialized focus and existing customer relationships while leveraging Home Depot’s scale and resources.
According to SRS, its role is to expand Home Depot’s core Pro business, which targets contractors working on large-scale projects who typically buy in bulk or from specialized wholesalers instead of retail outlets.
Home Depot, through its wholly owned subsidiary Gold Acquisition Sub, Inc., acquired GMS for $110 per share in an all-cash deal. The purchase price represents a significant premium, reflecting the strategic importance of GMS in Home Depot’s long-term growth plan.
Following the transaction, GMS has become a wholly owned indirect subsidiary of Home Depot and a direct subsidiary of SRS.
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Industry Impact and Outlook
According to industry analysts, the acquisition strengthens Home Depot’s position against traditional building supply distributors and is likely to increase competitive pressure on rivals like Lowe’s and Builders FirstSource.
With both SRS and GMS under its umbrella, Home Depot is better equipped to serve regional and national construction firms, offering expanded product availability, faster delivery, and project-specific support.
“This move significantly bolsters Home Depot’s distribution network and deepens its penetration into the professional contractor market,” said one industry expert. “It’s a clear sign that the company is serious about dominating the Pro segment.”
As housing demand rebounds and infrastructure projects pick up pace across North America, the acquisition gives Home Depot a more robust platform to support builders and contractors at scale.
With this deal finalized, Home Depot’s Pro-focused strategy is more visible than ever – and it could reshape the competitive landscape of the home improvement and construction supply industries in the years to come.
