Home Depot Emerges Victorious in GMS Acquisition Bid, Outbids QXO Inc.

Home Depot has won the bidding war against QXO Inc and acquired GMS Inc for $5.5 billion. The deal includes a cash tender offer for all outstanding shares of GMS common stock at $110 per share. Home Depot outbid QXO Inc's proposal of $95.20 per-share offer, ending the bidding war.

Home Depot has secured a significant victory in the U.S. building materials market by acquiring GMS Inc. in a high-stakes bidding war against QXO Inc. The deal, valued at $5.5 billion, includes a cash tender offer for all outstanding shares of GMS common stock at $110 per share, surpassing QXO's offer of $95.20 per share.

The acquisition will expand Home Depot's distribution network and product offerings, positioning it as a dominant player in the professional contractor market. GMS Inc., a specialist in drywall, ceilings, steel framing, and other interior construction materials, will integrate into Home Depot's SRS Distribution subsidiary, which was acquired in March 2024. This merger will create a network of over 1,200 locations and a fleet of more than 8,000 trucks, significantly enhancing Home Depot's market reach and capacity [1].

Home Depot's CEO, Ted Decker, emphasized the strategic importance of the acquisition, stating that it will provide residential and commercial customers with more fulfillment and service options. The company aims to leverage this expansion to drive growth in both the professional and consumer markets, despite current economic headwinds [2].

The acquisition comes at a time when the home improvement market is facing challenges due to economic factors such as high interest rates and potential tariffs. However, Home Depot remains optimistic about its long-term prospects, expecting the professional side of its business to grow by 4.9% in 2025. The company's strategy of investing in the contractor market is also expected to influence consumer shopping habits, as professionals tend to lead the way in home improvement decisions [2].

With this acquisition, Home Depot continues its aggressive expansion strategy, aiming to become the undisputed leader in the construction materials market. The company's ability to secure this deal in a competitive bidding war underscores its financial strength and strategic vision.

References:
[1] https://www.lagradaonline.com/us/home-depot-buys-gms-bidding-war/
[2] https://www.forbes.com/sites/pamdanziger/2025/07/07/home-depot-tightens-its-grip-on-the-pro-market-by-acquiring-gms-under-its-srs-subsidiary/