
In a major step to grow its presence in the professional construction market, Home Depot has announced that its subsidiary, SRS Distribution, will acquire GMS Inc., a leading distributor of drywall, ceilings, and steel framing materials. The deal values GMS at approximately $4.3 billion in equity, with a total enterprise value of around $5.5 billion, including debt.

The acquisition, which is subject to customary closing conditions, is expected to close by the end of Home Depot’s fiscal year. A subsidiary of SRS will purchase all outstanding shares of GMS’ common stock for $110 per share.
“Acquiring GMS represents a next logical step in [Home Depot’s] deep dig into the Pro distribution channel,” said Wells Fargo analysts led by Zachary Fadem in emailed comments.
Dan Tinker, CEO of SRS, emphasized how the merger will boost service capabilities: “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.”
The move supports SRS’s strategy to become a multi-category building materials distributor. GMS, which serves both residential and commercial markets, will expand SRS’s geographic footprint in the U.S. and Canada.
Home Depot acquired SRS in 2023 for $18.25 billion, positioning it as a cornerstone for its Pro-focused growth strategy. That purchase added roofing, landscaping, and pool contractor services to its offerings and expanded Home Depot’s total addressable market by $50 billion.

“The Home Depot acquired SRS as a platform for growth, and SRS continues to demonstrate exceptional execution and strong performance,” said Home Depot CEO Ted Decker. “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.”
The acquisition comes as Home Depot continues to prioritize its professional customer segment. Earlier this year, the company named Michael Rowe as executive vice president of Pro, and opened several new distribution centers focused on large building products like roofing shingles, insulation, and lumber.
Despite headwinds in the housing market—where home sales dropped 3.1% year-over-year in Q1, per GlobalData—Home Depot’s Q1 net sales rose 9.4% to $39.9 billion. While overall comparable sales dipped slightly, the Pro segment outperformed the DIY category.
This acquisition further solidifies Home Depot’s strategy of becoming a one-stop supplier for construction professionals. By absorbing GMS into the SRS platform, Home Depot adds extensive product lines and regional access points that can serve both large-scale commercial contractors and smaller residential builders more efficiently.
Industry analysts see the deal as a strategic counter to Lowe’s ongoing efforts to attract trade professionals. As competition in the Pro segment heats up, Home Depot’s broader distribution capabilities and specialized service offerings could help capture long-term market share—especially as the U.S. grapples with aging housing stock and growing demand for remodeling and multifamily construction.
For GMS, the deal also means access to expanded capital, supply chain capabilities, and customer reach via Home Depot’s retail and trade channels. Together, the companies could redefine the distribution landscape for specialty building products across North America.
Originally reported by Caroline Jansen in Construction Dive.
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