Home Depot to acquire GMS

The Home Depot has entered into a definitive agreement for its specialty trade distribution subsidiary, SRS Distribution Inc. (SRS), to acquire Gympsum Managemtn and Supply Inc. (GMS), a North American building products distributor. Under the terms of the agreement, SRS will buy GMS for roughly USD 5.5 bn, GMS announced in a press release. According to industry expert Craig Webb, GMS is the biggest publicly traded drywall specialist in the US. The transaction is expected to close by 31 January 2026, the end of The Home Depot's current fiscal year. It expects to fund the transaction through cash on hand and debt.

„Following careful consideration of The Home Depot’s proposal, along with other potential opportunities for the Company, our Board determined that this transaction is in the best interests of GMS and all of our shareholders,“ GMS Board Chair John Gavin said.  

Home Depot President and CEO Ted Decker said his company had purchased SRS „as a platform for growth“ and that SRS' integration into Home Depot had been a success. „The Home Depot’s growth strategy includes growing its share of wallet with professional contractors (Pros),“ Home Depot said in a press release, „and the company is building differentiated offerings and capabilities to better serve Pros across their entire project – from large, complex jobs to smaller renovations and repairs. ... The acquisition of GMS will accelerate SRS’s vision of becoming a leading, multi-category building materials distributor, adding a new vertical that is adjacent to its existing business.“

SRS CEO Dan Tinker said: „The combination of GMS and SRS will provide the residential and commercial professional contractor customer with more fulfillment and service options than ever before. 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.“