Home Depot has completed its $5.5 billion acquisition of GMS Inc., bringing the specialty building products distributor under its SRS Distribution subsidiary and signaling a push to expand digital and fulfillment services for professional contractors.
The companies first announced the deal in June. The acquisition gives Home Depot direct control of one of the nation’s leading suppliers of drywall, ceilings, steel framing, and other construction materials. GMS is now a direct subsidiary of SRS and a wholly owned unit of Home Depot.
Approximately 30.3 million shares of GMS, 80% of the company’s outstanding stock, were tendered at $110 per share in cash. Remaining shares will be converted to the same price.
Why Home Depot acquired GMS Inc.
Home Depot CEO Ted Decker said the acquisition strengthens the company’s ability to serve professional customers.
“The combination of SRS and GMS enables cross-selling and broadens our fulfillment capabilities,” Decker said. “It gives contractors more ways to order, track, and receive materials for every project.”
The move comes as professional customers account for more than half of Home Depot’s sales. The 2024 acquisition of SRS added a network of over 800 branches across 48 states. Home Depot expects that by integrating GMS, it will expand both product offerings and fulfillment options, including next-day delivery and click-and-collect services.
Industry analysts say the acquisition reflects a broader shift in the building materials market, where digital ordering and fast fulfillment are increasingly critical. By combining GMS’s specialized products with SRS’s distribution infrastructure, Home Depot is aiming for a seamless omnichannel experience for contractors handling projects from small renovations to large commercial builds.
Home Depot operates 2,353 retail stores, more than 325 distribution centers, and employs 470,000 people across North America. With GMS under its umbrella, the company is positioning itself as a fully integrated supplier for professional contractors. It further blends physical distribution with digital-first ordering and delivery capabilities.
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