On June 30, 2025, Home Depot’s SRS Distribution announced it is set to buy GMS Inc., a company that specializes in drywall, steel framing, ceilings, and other building materials.
They struck the deal after winning a tense bidding war, getting over the likes of QXO, a roofing products distributor; Reuters report that “QXO made a $95.20 per share offer, or about $5 billion in cash, and said it was prepared for a hostile takeover if GMS’ management did not accept the proposal by June 24.”
The huge company are reportedly paying $110 a share, which seems cheap until you realise that this number values the deal at about $4.3 billion in equity and around $5.5 billion when you include debt. GMS’s stock jumped 11.8% in afternoon trading toward a record close.
This deal aims for one thing: to make Home Depot going bigger in the pro contractor space, a crazily expensive market worth around $250 billion.
Home Depot, based in Atlanta, has been on a spending spree: the company also bought SRS Distribution last year for over $18 billion including debt. SRS supplies materials to professionals like roofers, landscapers, and pool contractors.
By combining SRS’s current network with GMS’s 300 locations, the new setup will have over 1,200 sites and more than 8,000 trucks – potentially flipping the retail industry on its head.
In a statement, SRS CEO Dan Tinker said that “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.”
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