GMS Inc. (GMS) entered a merger agreement on June 30, 2025, with Home Depot, Inc. (HD), to be acquired by its specialty trade distribution subsidiary, SRS Distribution, for $5.5 billion.
Under the terms of the agreement, a subsidiary of SRS will commence a cash tender offer to purchase all outstanding shares of GMS common stock for $110.00 per share, representing a premium of 13.02% from the stock’s last close.
GMS is a leading North American distributor of wallboard, ceilings, steel framing, and complementary building products, serving residential and commercial contractors through a network of over 320 distribution centers and nearly 100 tool centers across the U.S. and Canada.
The Home Depot is the world’s largest home improvement retailer, offering building materials, home improvement products, and installation services through over 2,300 stores and multiple online platforms across North America.
SRS Distribution is a McKinney, Texas–based distributor of roofing and building products for professional contractors, serving customers through more than 800 locations across 48 states. Founded in 2008, it’s grown into one of the fastest‑growing specialty trade distributors in the U.S., and is now operating as a wholly owned subsidiary of The Home Depot.
Two weeks ago, billionaire Brad Jacobs’ building-products distributor QXO (QXO) submitted a proposal to the President and CEO of GMS, offering to acquire all outstanding shares of the company for $95.20 per share in cash. Prior to the unsolicited bid becoming public, GMS stock was trading at $81.01. Shortly thereafter, reports emerged that Home Depot had also made an offer for the company.
GMS CEO John Turner Jr., along with the company’s senior leadership team, will keep leading GMS after it becomes part of the SRS organization.
The deal is expected to close by the end of Home Depot’s current fiscal year, which ends on January 31, 2026.
The Home Depot expects to fund the transaction through cash on hand and debt.
Jefferies served as the financial advisor to GMS, while Alston & Bird and Richards, Layton & Finger provided legal counsel. For Home Depot, BofA Securities and J.P. Morgan Securities acted as financial advisors, with Weil, Gotshal & Manges serving as legal counsel.
Home Depot is paying 12 times the EBITDA for GMS.
To explore more about this merger and acquisition transaction, please visit the Deal Metrics page here:
Deal Metrics for the acquisition of GMS Inc. (GMS) by Home Depot, Inc. (HD)
The Deal Metrics page for each merger or acquisition includes:
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Editor’s Note: Baranjot Kaur contributed to this article