The Home Depot’s SRS Distribution division will purchase GMS, a leading North American specialty building products distributor, for a cash tender offer of $110 per share of common stock, reflecting a total equity value of $4.3 billion. The acquisition is projected to be completed by February 2026. At that time, SRS, which The Home Depot acquired in March 2024 for $18.25 billion, will merge with GMS.
GMS distributes building products such as drywall, ceilings, steel framing and other complementary products used in construction and remodeling projects, and the company brings differentiated capabilities, product categories and customer relationships that are complementary to SRS’s business today and will broaden its U.S. and Canadian distribution footprint.
“The combination of GMS and SRS will provide the residential and commercial Pro customer with more fulfillment and service options than ever before,” said Dan Tinker, CEO of SRS in a statement. “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.”
Home Improvement Retailers Jockey for Professionals’ Business
Home Depot has made several recent moves to strengthen its professional offerings, including plans announced in March 2024 to open four new distribution centers (DCs) specifically for pros. This followed Home Depot’s November 2023 acquisition of Construction Resources, a leading distributor of design-oriented surfaces, appliances and architectural specialty products. In January 2023, Home Depot added extra tiers to its Pro Xtra loyalty program, all part of its effort to gain wallet share within the $475 billion addressable professional market.
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Home Depot competitor Lowe’s also has been angling for more spend by home improvement professionals; in February 2025 the retailer aligned its consumer and professional loyalty programs, redesigning the latter specifically for the small- to mid-sized professional customer.
“The Home Depot acquired SRS as a platform for growth, and SRS continues to demonstrate exceptional execution and strong performance,” said Ted Decker, Chair, President and CEO of The Home Depot in a statement. “In our first year of working together, we’ve captured significant synergies, including cross-selling new products and service offerings to both Home Depot and SRS customers, advancing Home Depot’s enterprise trade credit program through the SRS platform, and many other initiatives designed to drive the customer value proposition and operational efficiency. This success gives us confidence that the addition of GMS to the SRS platform will allow us to create even greater value for our customers.”
