Home Depot has announced plans to purchase GMS Inc., a leading supplier of construction materials, in a deal valued at $4.3 billion, further expanding its footprint in the professional contractor segment. The acquisition will be handled through Home Depot’s professional division, SRS Distribution, and is expected to close in early 2026, pending regulatory approvals.
The purchase comes as part of Home Depot’s broader strategy to increase its presence in the pro customer market, which includes roofers, remodelers, and commercial builders—groups that contribute significantly to year-round sales. GMS, with its nationwide network of more than 320 distribution centers and nearly 100 tool service locations, offers Home Depot a stronger logistical backbone and deeper access to construction professionals.
GMS had previously received a competing bid from QXO Inc., a company backed by private equity, for around $5 billion. However, Home Depot’s offer of $110 per share significantly outpaces QXO’s earlier bid of $95.20, positioning the retail giant as the frontrunner in the deal. News of the offer caused GMS shares to jump by more than 25%, reflecting investor confidence in the deal’s momentum and the potential for competing bids.
This marks the second major acquisition involving SRS Distribution, following Home Depot’s purchase of the distributor for $18.25 billion in 2024. By folding GMS into its expanding pro division, Home Depot aims to enhance its supply chain efficiency and better serve a professional customer base that increasingly values speed, specialization, and localized support.
