Home Depot expands product distribution with $5.5bn deal

The Home Depot in the US is to acquire building products distributor GMS Inc for US$5.5 billion, including net debt. The deal is being made through Home Depot’s trade subsidiary SRS Distribution and will further expand its position supplying building products to professional customers.

SRS, which was acquired by Home Depot in 2024, has 800 locations in 48 US states while GMS has more than 300 distribution centres carrying products such as wallboard, ceilings and steel framing. It also has nearly 100 tool sales, rental and service centres targeting residential and commercial contractors in the US and Canada.

GMS reported revenues of around US$5.5 billion in its most recent financial year.

The deal represents a further push into distribution for professional customers for Home Depot. It already targets contractors at its more than 2,300 retail stores, including a rental business with annual revenues of more than $1 billion.

Ted Decker, chair, president and CEO of Home Depot said; “The combination of GMS and SRS will provide the residential and commercial Pro customer with more fulfillment and service options than ever before.”

Dan Tinker, CEO of SRS, added; “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.

“GMS is an industry leader with a proven track record of growth, and we look forward to welcoming the entire GMS team to SRS and capturing the exciting opportunity ahead.”

John C. Turner, Jr., president and CEO of GMS, said it would be able to provide a wider breadth of products and services to its professional contractor customers as part of SRS and The Home Depot; “We are confident that this transaction positions GMS to capitalise on the promising opportunities ahead and accelerate our growth.”

Turner and his senior leadership team will continue to lead GMS as part of SRS.