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GMS
Inc. of Tucker, Georgia, is a distributor of specialty building
products like drywall, steel framing and other supplies used in
both residential and commercial projects.
A subsidiary of Home Depot’s SRS Distribution Inc., the supply
company it bought last year, will start a cash tender offer to
buy all outstanding shares of GMS for $110 per share. The total
equity value of the transaction is approximately $4.3 billion.
The deal is worth about $5.5 billion, including debt.
Home Depot purchased SRS Distribution, a materials provider for
professionals, for more than $18 billion including debt. SRS
provides materials for professionals like roofers, landscapers
and pool contractors.
“The combination of GMS and SRS will provide the residential and
commercial Pro customer with more fulfillment and service
options than ever before,” SRS CEO Dan Tinker said in a
statement. “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.”
Home Depot, based in Atlanta, moved quickly to acquire GMS,
putting in its own bid less that two week after the company QXO
offered $5 billion, according to a regulatory filing.
Billionaire Brad Jacobs is the CEO of QXO, which was created to
snap up companies in the building supply sector. In April QXO
completed its approximately $11 billion acquisition of Beacon
Roofing Supply.
The GMS transaction with Home Depot is expected to close by the
end of fiscal 2025. Shares of the GMS jumped nearly 12% at the
opening bell. Home Depot shares declined slightly.
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