Home Depot's $5.5B GMS Acquisition Spurs 0.98 Stock Surge $1.59B Volume Ranks 38th

On September 4, 2025, The Home Depot (HD) rose 0.98% with a trading volume of $1.59 billion, ranking 38th in market activity. The stock’s performance followed the company’s completion of its $5.5 billion acquisition of GMS Inc., a leading distributor of specialty building materials. The deal, finalized through its subsidiary SRS Distribution, expands The Home Depot’s reach in the professional contractor market by integrating GMS’s expertise in drywall, ceilings, and steel framing products. CEO Ted Decker highlighted the strategic alignment, emphasizing cross-selling opportunities and enhanced service capabilities for residential and commercial construction projects.

The acquisition, announced in June 2025, was executed via a tender offer for 79.5% of GMS shares at $110 per share. Remaining shares were converted to cash under the merger terms, making GMS a direct subsidiary of SRS. The move strengthens SRS’s position as a multi-category building materials distributor, leveraging GMS’s 300+ distribution centers and 100+ tool service locations. Analysts note the integration could drive operational efficiencies, particularly in fulfillment and customer service, aligning with The Home Depot’s broader strategy to deepen relationships with professional contractors.

Following the merger, GMS became an indirect wholly owned subsidiary of The Home Depot. The transaction is expected to bolster the company’s market share in both residential and commercial sectors, though risks such as integration challenges and macroeconomic pressures remain. The Home Depot’s stock, included in the Dow Jones and S&P 500, continues to reflect investor confidence in its expansion into specialized distribution channels.

The tender offer expired on September 3, 2025, with all conditions satisfied. Shares not tendered were converted to cash, finalizing the acquisition. The Home Depot’s stock closed the day with a 0.98% gain, indicating market approval of the strategic move.