The Home Depot and its Subsidiary SRS Distribution Complete Acquisition of GMS

Core Viewpoint - The Home Depot has successfully acquired GMS Inc. for an enterprise value of approximately $5.5 billion, enhancing its position in the specialty building products distribution market [1][2]. Acquisition Details - The acquisition was completed through SRS Distribution Inc., a subsidiary of The Home Depot, and was initially announced on June 30, 2025 [1]. - The tender offer for GMS common stock expired on September 3, 2025, with 30,337,823 shares validly tendered, representing about 79.5% of outstanding shares [3]. - The Home Depot accepted all validly tendered shares at a price of $110 per share in cash, resulting in GMS becoming a direct subsidiary of SRS [4][5]. Strategic Implications - The acquisition of GMS is expected to enhance SRS's capabilities and customer relationships, allowing for cross-selling synergies and a more comprehensive service offering to professional contractors [2]. - The Home Depot aims to grow its market share among professional contractors by providing differentiated offerings that cater to various project sizes, from large jobs to smaller renovations [2]. Company Background - The Home Depot is the largest home improvement specialty retailer globally, operating over 2,353 retail stores and employing more than 470,000 associates [6]. - SRS Distribution, founded in 2008, has rapidly grown to become a significant player in the building products distribution sector, operating over 800 locations across 48 states [7]. - GMS, established in 1971, operates more than 300 distribution centers and nearly 100 tool sales and rental centers, focusing on wallboard, ceilings, and steel framing products [8].