An Home Depot store in San Carlos, California, USA, on Monday, November 11, 2024.
David Paul Morris | Bloomberg | Getty images
Home Deposit said on Monday he is buying GMSA distributor of construction products, for approximately $ 4.3 billion as the retailer moves to generate more contractors and other home professionals.
Home Depot’s actions fell slightly in the afternoon negotiation on Monday. GMS shares rose more than 11% and reached a maximum of 52 weeks.
As part of the agreement, the Home Depot SRS distribution owned by SRS will buy all GM in circulation shares for $ 110 per share, which adds approximately $ 4.3 billion and amounts to the total value of the company, including the net debt of approximately $ 5.5 billion, the company said.
Home Depot said that the acquisition is completed at the beginning of 2026.
The Home Depot’s announcement also concludes a possible bidding war between the retail retail and billionaire Brad Jacobs. The Jacobs construction products distributor, Qxo, had offered about $ 5 billion in cash to acquire GMS and said it would continue with a hostile acquisition if the company’s administration rejected the proposal.
As Home Depot pursues growth, it has gone after a more stable and lucrative piece of the home improvement business: electricians, roofs, housing renovators and other professionals who address large projects throughout the year and need many supplies. Home Depot said it is accelerating that strategy with the GMS agreement.
Home Depot bought SRS Distribution, the subsidiary that GMS is acquiring, last year for $ 18.25 billion, in The greatest acquisition in its history. SRS, based in Texas, sells supplies to professionals in landscaping companies, ceilings and swimming pools and bought many other smaller suppliers as it is grown.
The Home Depot approach to sell professionals is well timed. Sales of DIY customers have slowed down, since the highest mortgage rates have decreased housing billing and the demand for major house owners due to the highest indebtedness costs.
The company said that total sales grow 2.8% throughout the fiscal year and comparable sales, which eliminates the impact of unique factors such as store openings and calendar differences, to increase approximately 1%.
