Home Depot acquisition headlines have made waves this week as the company finalized its purchase of GMS Inc., marking a major milestone in its growth strategy. The deal, officially completed on September 4, 2025, adds GMS under the umbrella of Home Depot’s subsidiary, SRS Distribution, in a transaction valued at approximately $5.5 billion including debt.
This acquisition highlights Home Depot’s ongoing commitment to expanding its professional contractor business, which has become a central focus in recent years. By adding GMS to its portfolio, the retailer is further strengthening its position in the building materials supply chain.
A Closer Look at the Deal
The Home Depot acquisition of GMS was announced on June 30 and moved quickly through the approval process. Shareholders tendered roughly 79.5% of outstanding shares—about 30.3 million—by the deadline of September 3, allowing the merger to be finalized the following day.
Key financial details include:
- Equity value: $4.3 billion, based on $110 per share
- Enterprise value: $5.5 billion including debt
- Transaction structure: GMS is now a subsidiary of SRS Distribution, making it an indirect subsidiary of Home Depot
With this transaction, GMS joins a growing professional distribution network that already includes SRS, which Home Depot acquired in 2024.
Why the Home Depot Acquisition Matters
This deal is far more than a financial transaction—it is a strategic expansion aimed at capturing greater market share among professional contractors. GMS brings expertise in drywall, ceilings, steel framing, insulation, and complementary building products, which aligns well with Home Depot’s goal of offering a one-stop solution for both large and small contractors.
The acquisition creates:
- Expanded reach: More than 1,200 locations and nearly 8,000 delivery vehicles now serve customers nationwide.
- Enhanced logistics: A stronger fulfillment network allows faster delivery of heavy and bulky products.
- Broader product mix: Contractors gain access to more specialized materials alongside the standard offerings already provided by Home Depot.
Impact on Contractors and Customers
For contractors, the benefits are immediate. The combined network ensures:
- Greater product availability in local markets
- More consistent supply of critical building materials
- Improved delivery and fulfillment services tailored to job site needs
This move also supports Home Depot’s ambition to make the Pro segment a central driver of revenue. Already accounting for about half of the company’s total sales, the Pro business now has even stronger tools to maintain long-term contractor loyalty.
Competitive Landscape
The home improvement sector has been undergoing significant transformation as retailers shift attention from DIY to professional customers. Rivals have also been expanding in this space, but Home Depot’s ability to integrate SRS and now GMS gives it a unique advantage. By creating a vertically integrated supply chain that stretches from warehouse to job site, the company positions itself as a trusted partner for professionals who demand reliability, speed, and scale.
Strategic Vision Going Forward
The Home Depot acquisition of GMS aligns with the company’s long-term strategy to:
- Deliver best-in-class fulfillment for Pro customers
- Enhance cross-selling opportunities across multiple product categories
- Strengthen customer relationships by providing more touchpoints and specialized services
CEO Ted Decker emphasized that while the company will continue to pursue new opportunities, the priority is to maximize the value of recent acquisitions. With SRS and GMS now operating together under Home Depot, the focus will be on integrating systems, expanding digital solutions, and improving delivery efficiency.
At a Glance
| Detail | Information |
|---|---|
| Acquisition Completed | September 4, 2025 |
| Equity Value | $4.3 B ($110 per share) |
| Total Enterprise Value | $5.5 B (including debt) |
| Shares Tendered | 79.5% (~30.3 million) |
| Combined Network | 1,200+ locations, 8,000 trucks |
| Strategic Goal | Strengthen Pro contractor services |
Closing Thoughts
The Home Depot acquisition of GMS is more than just a business transaction—it represents a clear shift in the way the retailer is shaping the future of professional services in the building industry. By integrating GMS into its Pro supply network, Home Depot is better positioned to meet the evolving demands of contractors, streamline project management, and deliver value at every stage of construction.
As the company continues to expand its reach and refine its services, both contractors and customers can expect even greater convenience and efficiency in the months ahead. Stay tuned to see how this major move reshapes the industry landscape.