Home Depot Acquisition of GMS: What will change after a big deal?
A big news came in the business world on September 4, 2025 when Home Depot acquisition of GMS was completed with a massive deal of $5.5 billion. This move is not just an ordinary purchase, but a strategy through which Home Depot can serve its “Pro customers” i.e. professional contractors even more. With this deal, the company’s focus is clear – “stay with the Pro for every project.”
Home Depot Acquisition: Big picture of the deal
Atlanta, Georgia-headquartered Home Depot had already announced in June 2025 that it would acquire GMS. Now on September 4, this deal was finally closed, whose total value is approximate $5.5 billion. This acquisition was completed through Home Depot’s subsidiary SRS Distribution, which the company acquired in March 2024 in another big $18 billion deal.
After this new step, both SRS and GMS will give more fulfillment and service options to contractors. Home Depot CEO Edward “Ted” Decker has clearly said that their main goal is to cover the entire project journey of Pro customers, whether it is a large construction or a small repair.
What is GMS and why is it important?
If you are wondering what GMS actually does, in simple words, GMS i.e. Gypsum Management & Supply is a leading distributor of specialty building products. GMS is known for its strong portfolio that includes building materials such as drywall, ceilings and steel framing. All of these products are vital for construction and remodeling projects, whether the project is small or large.
The company, which began its journey in 1971, today operates more than 300 distribution centers in the U.S. and Canada. Such a large network will be a valuable asset for Home Depot, as pro contractors always prefer such reliable distributors for bulk supplies. It is not yet clear whether there will be any closure of GMS centers after coming under Home Depot, but one thing is certain – scale and network will make Home Depot’s business stronger.
New Era for Professional Contractors
The biggest objective of Home Depot acquisition is to attract professional contractors. The company said in its statement that it wants to increase its “share of wallet” with Pros. This means that contractors should fulfill most of their requirements from Home Depot.
After the coming of SRS Distribution and GMS, a combined power will be formed which will create a unique value proposition for the Pro market. These two companies complement each other’s strengths – SRS specializes in roofing distribution and GMS in drywall and specialty products. The combination of these two means that contractors will now have more categories of products and better service options available on a single platform.
Financial Details of the Deal
In this Home Depot acquisition, GMS shareholders were given $110 per share in cash. This tender offer expired on September 3, 2025, in which approximately 30.3 million shares were validly tendered, representing 79.5% of the total outstanding shares of GMS.
After that, Home Depot officially merged GMS through its subsidiary Gold Acquisition Sub, Inc. to form its own subsidiary. After this merger, the shares which were not tendered were also cancelled and the same cash value of $110 per share was given. Now GMS has come directly under SRS and indirectly under Home Depot.
Home Depot’s position in the market
After this Home Depot acquisition, one thing is clear that Home Depot is aggressively pursuing its Pro-focused strategy. After acquiring SRS in 2024, the company had already created a stronghold in roofing distribution. Now with the addition of GMS, their portfolio has expanded to drywall, ceilings and steel framing.
In the words of Ted Decker, “The combination of SRS and GMS will create a new value proposition where Pro customers will be able to complete their projects faster and seamlessly.” This is a big signal that Home Depot is no longer just a retail home improvement store, but is becoming a full-scale partner for contractors.
What does it mean for the industry?
This deal could be a game-changer for the construction and remodeling industry. On one hand, contractors will get multiple product categories and faster fulfillment under one umbrella, and on the other, Home Depot will be in an even stronger position against its competitors. This acquisition could also open the doors to new innovations and partnerships in the future.
Disclaimer:
This article has been written for informational purpose. The details given in it are based on publicly available reports and company announcements. It is important to do your own research and take professional advice before taking investment or financial decisions.
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