In a transformative move that reshapes the competitive terrain of the building supply industry, Home Depot has announced its acquisition of GMS Inc., a leading distributor of wallboard and ceiling products, for approximately $4.3 to $5.5 billion. The cash tender offer, priced at $110 per share, represents a 13% premium over GMS’s prior closing price and signals Home Depot’s aggressive push into the professional contractor market.
This strategic acquisition expands Home Depot’s addressable market by approximately $50 billion, providing access to a $1 trillion construction supply opportunity. The deal particularly strengthens Home Depot’s position in serving professional contractors, who drive $530 billion in industry revenue.
By acquiring GMS’s specialized distribution network, Home Depot gains ownership of critical supply chain materials including wallboard, steel framing, and ceiling products—categories that previously represented gaps in their portfolio.
The integration creates a formidable distribution powerhouse operating over 1,200 centers across the United States and Canada. Combined with SRS Distribution‘s 800 locations and GMS’s 320 facilities, the network will deploy a fleet of 8,000 trucks capable of executing daily jobsite deliveries at scale.
This upgraded logistics capability positions Home Depot to serve complex project purchase occasions required by renovators and large-scale remodelers. The enhanced distribution network enables same-day delivery across multiple product lines, addressing contractors’ urgent material needs and reducing project delays.
The acquisition follows Home Depot’s $18.25 billion purchase of SRS Distribution last year, establishing a clear pattern of large-scale expansion targeting professional customers. Home Depot expects the transaction to close by the end of fiscal 2024, pending regulatory approvals and customary closing conditions.
This strategic pivot differentiates Home Depot from rival Lowe’s, which recently acquired Artisan Design Group for $1.3 billion to focus on small to medium contractors. The divergent strategies reflect broader industry consolidation as retailers seek growth amid slowing consumer housing activity driven by heightened interest rates.
