Home Depot is buying specialty building products distributor GMS Inc. in a deal valued at approximately $4.3 billion.
The Atlanta home improvement chain said Monday the transaction will help strengthen Home Depot’s relationship with professional contractors.
GMS of Tucker, Georgia, is a distributor of specialty building products including drywall, ceilings, steel framing and other complementary products related to construction and remodeling projects in residential and commercial end markets.
As part of the deal, a subsidiary of Home Depot’s SRS Distribution Inc. will start a cash tender offer to buy all outstanding shares of GMS for $110 per share. The total equity value of the transaction is approximately $4.3 billion. The deal is worth about $5.5 billion, including debt.
Last year, Home Depot purchased SRS Distribution, a materials provider for professionals, in a deal valued at approximately $18.25 billion including debt. SRS provides materials for professionals like roofers, landscapers and pool contractors.
The GMS transaction is expected to close by the end of fiscal 2025. Shares of the company jumped 11% in premarket trading. Home Depot shares slipped less than 1%.
