The Home Depot is making a major move to scale its professional ecommerce and logistics infrastructure, announcing June 30 that its specialty distribution subsidiary, SRS Distribution Inc., will acquire GMS Inc. in a cash transaction valued at approximately $5.5 billion, including net debt.
The SRS Distribution acquisition of GMS would strengthen Home Depot’s position in the $475 billion Pro market, particularly in online-enabled jobsite delivery and fulfillment for specialty building materials.
The boards of both companies unanimously approved the deal. The deal includes a tender offer of $110 per share for all outstanding shares of GMS. That values the company’s equity at around $4.3 billion. The companies expect the acquisition to close by the end of Home Depot’s fiscal 2025, subject to regulatory and customary closing conditions, according to a joint press release from both companies.
With this acquisition, Home Depot is doubling down on its strategy to win more digital-first professional customers, especially in the high-frequency, high-margin specialty trade segment. SRS Distribution, which Home Depot acquired in 2024 for $18.25 billion, will now combine its existing platform with GMS’s broad footprint across drywall, ceilings, and steel farming product categories that are essential to residential and commercial construction and often purchased through Pro-focused digital portals and B2B marketplaces.
“This acquisition accelerates SRS’s strategy to become a leading multi-category building materials distributor,” said Dan Tinker, CEO of SRS Distribution. “Together, we’ll operate over 1,200 locations, supported by more than 8,000 trucks and robust digital order-to-delivery systems—helping us deliver tens of thousands of e-commerce-enabled jobsite orders daily.”
The Home Depot Inc. ranks No. 4 in the Top 2000 Database. The Digital Commerce 360 database ranks North America’s largest online retailers by their annual ecommerce sales. Home Depot is also the top-ranked retailer in the Top 2000’s Hardware & Home Improvement category.
About the Home Depot/SRS acquisition of GMS
GMS Inc., headquartered in Tucker, Georgia, runs more than 300 distribution centers across the U.S. and Canada and is among the largest distributors of gypsum wallboard, acoustical ceiling systems, and related products. The company reported $5.6 billion in revenue for fiscal 2024, according to its most recent 10-K filing with the U.S. Securities and Exchange Commission (SEC).
For Home Depot, this acquisition adds scale to its growing Pro ecosystem — one that already includes B2B-centric digital tools, trade credit programs, mobile ordering, and delivery scheduling features. It also furthers the company’s ongoing push to shift from retail to hybrid retail-distribution for trade professionals, who now represent half of its annual sales, according to Home Depot’s latest earnings report.
GMS’s current leadership team, including president and CEO John C. Turner, Jr., will remain in place post-acquisition and continue running the business as part of the SRS platform.
“Joining SRS and Home Depot allows us to serve our contractor customers with a broader set of products and services, while maintaining the service excellence that defines GMS,” Turner said in the release.
This transaction represents the latest move in the consolidation of B2B building materials distribution, where ecommerce capabilities and logistics scale are becoming increasingly critical. By integrating GMS into its expanding digital supply chain, Home Depot aims to enhance the same-day and next-day delivery options and improve the Pro customer experience from quote to fulfillment.
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