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1h ago

Home Depot’s SRS Subsidiary Secures GMS for $4.3 Billion

Outbidding rival QXO, the agreement will deliver a network spanning more than 1,200 locations with 8,000 trucks by early 2026.

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Home Depot announced an acquisition this week.
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FILE - A Home Depot logo sign hands on its facade, Friday, May 14, 2021, in North Miami, Fla. (AP Photo/Wilfredo Lee, File)

Overview

  • SRS Distribution will launch a $110-per-share tender offer for GMS, valuing the transaction at $5.5 billion including debt.
  • The deal blocks Brad Jacobs’s QXO from pursuing a roughly $5 billion cash bid and averts a potential hostile takeover.
  • Home Depot anticipates closing the acquisition by early 2026 and integrating GMS into its professional contractor platform.
  • Combined with SRS, GMS will extend coverage across the U.S. and Canada with over 1,200 branches and a fleet of more than 8,000 delivery trucks.
  • Following the announcement, GMS shares rallied nearly 12% as analysts noted the premium underscores Home Depot’s push into higher-margin pro customers.