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GMS Inc. to be Acquired by Home Depot Subsidiary for $110 per Share
ByAinvest
Monday, Jun 30, 2025 11:07 pm ET1min read
GMS Inc. has agreed to be acquired by Home Depot's subsidiary, SRS Distribution, for $110 per share, a 36% premium to its unaffected share price. The deal, valued at $5.5B, is expected to close by the end of Home Depot's fiscal year, subject to regulatory approvals and other conditions. GMS' leadership team will continue to lead the company as part of the SRS organization.
GMS Inc. (NYSE: GMS) has agreed to be acquired by Home Depot's subsidiary, SRS Distribution Inc., for $110 per share, representing a 36% premium to its unaffected share price [1]. The deal, valued at approximately $5.5 billion, is expected to close by the end of Home Depot's fiscal year, subject to regulatory approvals and other customary closing conditions [2].Under the terms of the merger agreement, a subsidiary of SRS will commence a cash tender offer to purchase all outstanding shares of GMS common stock for $110 per share. This offer reflects a total equity value of approximately $4.3 billion and implies a total enterprise value (including net debt) of approximately $5.5 billion [1]. The transaction is expected to be funded through cash on hand and debt and is not expected to alter The Home Depot's plan to return to a 2.0x leverage ratio by the end of fiscal 2026 [2].
GMS' leadership team, including John C. Turner, Jr., president and CEO, will continue to lead the company as part of the SRS organization. The acquisition of GMS is expected to accelerate SRS's vision of becoming a leading, multi-category building materials distributor, adding a new vertical that is adjacent to its existing business [2].
The acquisition is expected to be accretive to adjusted EPS in the first year following closing, excluding synergies. The transaction is subject to customary closing conditions, including the receipt of required regulatory approvals and the tender of a number of shares of GMS common stock representing a majority of the then-outstanding shares [1].
References:
[1] https://www.marketscreener.com/quote/stock/GMS-INC-28377264/news/SRS-Distribution-Inc-entered-into-a-definitive-agreement-to-acquire-GMS-Inc-for-4-2-billion-50381621/
[2] https://ir.homedepot.com/news-releases/2025/06-30-2025-130354727
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