Home Depot to Acquire GMS for $4.3 Billion in Strategic Push Toward Pro Market

Home Depot announced Monday it will acquire building-products distributor GMS Inc. for approximately $4.3 billion, in a major step to expand its reach among professional contractors and tradespeople.

The deal will be executed through SRS Distribution, a Home Depot-owned subsidiary acquired last year for $18.25 billion. SRS will purchase GMS shares at $110 apiece, bringing the total enterprise value, including debt, to around $5.5 billion. The acquisition is expected to close by early 2026.

This acquisition strengthens Home Depot’s ongoing shift toward serving home professionals—a segment viewed as more stable and profitable than DIY retail, which has slowed amid higher interest rates and reduced home renovation activity.

The announcement also ends a brewing takeover contest with billionaire Brad Jacobs, whose firm QXO Inc. had proposed a $5 billion cash offer and threatened a hostile bid if rejected.

While GMS shares surged 12%, hitting a 52-week high, Home Depot stock slipped slightly, reflecting investor caution amid ongoing integration costs.

The move supports Home Depot’s goal to grow professional sales and scale in key categories like roofing, drywall, and specialty building materials—areas in which GMS has established distribution strength.