GMS Inc. (GMS), a specialty building products distributor, said on Monday that it has inked a deal with The Home Depot (HD), a home improvement retailer, to be acquired by its specialty trade distribution subsidiary, SRS Distribution, for $110 per share.
Post-transaction, SRS will broaden its offerings for professional contractors with the addition of GMS' wallboard, ceilings, steel framing, and complementary product categories.
Under the terms, a subsidiary of SRS will commence a tender offer to acquire all shares of GMS for $110 per share, for a total enterprise value, including net debt, of around $5.5 billion. The $110 per-share consideration represents a premium of around 36% to GMS' share price as of June 18.
The Home Depot expects to fund the transaction through cash on hand and debt.
The transaction is expected to be closed by the end of January 31, 2026.
John J. Gavin, Chair of GMS, said: "Our Board determined that this transaction is in the best interests of GMS and all of our shareholders. Not only does this outcome deliver significant and certain value to our shareholders, but it also has the added benefit of bringing GMS together with The Home Depot and SRS, where we are confident our employees will flourish, our customers and suppliers will benefit from our increased offerings and resources."
John C. Turner Jr., CEO of GMS, and GMS' senior leadership team will continue to serve GMS as part of the SRS.
GMS was up by 11.04% at $108.14 on the New York Stock Exchange.
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