Home Depot completes $5.5 billion acquisition of GMS through SRS

MCKINNEY, Texas - The Home Depot (NYSE:HD), a prominent player in the Specialty Retail industry with a market capitalization of over $405 billion and annual revenue exceeding $165 billion, has completed its acquisition of GMS Inc. through its specialty trade distribution subsidiary, SRS Distribution Inc., for a total enterprise value of approximately $5.5 billion, according to a press release statement issued Thursday. InvestingPro analysis indicates the company maintains a strong financial health rating, supported by consistent profitability and robust cash flows.

GMS, a distributor of specialty building products including drywall, ceilings, and steel framing for residential and commercial construction projects, will now operate as a direct subsidiary of SRS and an indirect wholly owned subsidiary of The Home Depot.

The acquisition, first announced on June 30, 2025, strengthens SRS’s position in the building materials distribution market by adding complementary product categories and customer relationships.

"The addition of GMS further enhances SRS’s position as a leading multi-category building materials distributor," said Ted Decker, chair, president and CEO of The Home Depot.

The tender offer for GMS shares expired on September 3, with approximately 79.5% of outstanding shares validly tendered. The Home Depot has accepted these shares for payment at $110 per share in cash. All remaining shares not tendered have been converted into the right to receive the same cash payment.

Home Depot acquired SRS in 2024 as part of its strategy to increase its share of business with professional contractors. The company stated that the combination of SRS and GMS will provide more fulfillment and service options for professional contractors.

GMS operates more than 300 distribution centers across the United States and Canada, offering wallboard, ceilings, steel framing, and complementary products. The company also runs nearly 100 tool sales, rental, and service centers.

The Home Depot currently operates more than 2,353 retail stores, over 800 branches, and more than 325 distribution centers across the United States, Canada, and Mexico. With analyst price targets ranging from $335 to $481 per share and 14 analysts recently revising earnings estimates upward, the company continues to demonstrate strong market positioning. InvestingPro subscribers can access detailed financial health metrics, fair value analysis, and expert insights to make more informed investment decisions.

In other recent news, Home Depot has extended the expiration date of its tender offer to acquire all outstanding shares of GMS Inc. at $110 per share in cash. Initially set to expire on August 22, the offer is now extended until September 3, 2025, to allow more time to meet remaining conditions under the Canadian Competition Act. The company also received early antitrust clearance from the U.S. Department of Justice for this acquisition, fulfilling a key condition for the tender offer. In another development, Home Depot’s board of directors declared a quarterly cash dividend of $2.30 per share, payable on September 18, 2025, marking the 154th consecutive quarter of dividend payments.

Analyst firm RBC Capital raised its price target for Home Depot to $401 from $399, maintaining a Sector Perform rating, citing modest improvements in demand following the company’s second-quarter results. UBS reiterated its Buy rating with a $475 price target, noting Home Depot’s market share gains and significant outperformance in U.S. comparable sales. These recent developments provide a snapshot of Home Depot’s current strategic moves and analyst perspectives.

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