Home Depot buying specialty building products distributor GMS in deal worth about $4.3B

Home Depot is buying specialty gathering products distributor GMS Inc. successful a woody valued astatine astir $4.3 billion.

The Atlanta location betterment concatenation said Monday the transaction volition assistance fortify Home Depot’s narration with nonrecreational contractors.

GMS of Tucker, Georgia, is simply a distributor of specialty gathering products including drywall, ceilings, alloy framing and different complementary products related to operation and remodeling projects successful residential and commercialized extremity markets.

As portion of the deal, a subsidiary of Home Depot’s SRS Distribution Inc. volition commencement a currency tender connection to bargain each outstanding shares of GMS for $110 per share. The full equity worth of the transaction is astir $4.3 billion. The woody is worthy astir $5.5 billion, including debt.

Last year, Home Depot purchased SRS Distribution, a materials supplier for professionals, successful a woody valued astatine astir $18.25 cardinal including debt. SRS provides materials for professionals similar roofers, landscapers and excavation contractors.

The GMS transaction is expected to adjacent by the extremity of fiscal 2025. Shares of the institution jumped 11% successful premarket trading. Home Depot shares slipped little than 1%.

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