Home Depot said Monday that it is buying GMS, a building-products distributor, for about $4.3 billion as the retailer moves to draw more sales from contractors and other home professionals.<\/p>\n
Shares of Home Depot were roughly flat in early trading Monday. GMS shares jumped more than 11%.<\/p>\n
As part of the deal, the Home Depot-owned subsidiary SRS Distribution will buy all outstanding shares of GMS for $110 per share, which adds up to about $4.3 billion and amounts to total enterprise value including net debt of about $5.5 billion, the company said.<\/p>\n
Home Depot said it expects the acquisition to be completed by early 2026.<\/p>\n
Home Depot\u2019s announcement also concludes a potential bidding war between the big-box retailer and billionaire Brad Jacobs. Jacobs\u2019 building-products distributor QXO had offered about $5 billion in cash to acquire GMS and said it would press forward with a hostile takeover if the company\u2019s management rejected the proposal.<\/p>\n
As Home Depot chases growth, it\u2019s gone after a steadier and more lucrative piece of the home improvement business: electricians, roofers, home renovators and other professionals who tackle large projects year-round and need a lot of supplies. Home Depot said it\u2019s speeding along that strategy with the GMS deal.<\/p>\n
Home Depot bought SRS Distribution \u2014 the subsidiary that\u2019s acquiring GMS \u2014 last year for $18.25 billion, in <\/strong>the largest acquisition in its history. Texas-based SRS sells supplies to professionals in the landscaping, roofing and pool businesses and it has bought up many other smaller suppliers as it\u2019s grown.<\/p>\n Home Depot\u2019s focus on selling to professionals is well-timed. Sales from do-it-yourself customers have slowed as higher mortgage rates have decreased housing turnover and dampened homeowners\u2019 demand for larger projects because of higher borrowing costs.<\/p>\n The company said it expects total sales to grow by 2.8% for the full fiscal year and comparable sales, which take out the impact of one-time factors like store openings and calendar differences, to rise about 1%.<\/p>\n<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Home Depot said Monday that it is buying GMS, a building-products distributor, for about $4.3…<\/p>\n","protected":false},"author":1,"featured_media":2405,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-2404","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/moderncryptotrader.com\/index.php\/wp-json\/wp\/v2\/posts\/2404","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/moderncryptotrader.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moderncryptotrader.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moderncryptotrader.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/moderncryptotrader.com\/index.php\/wp-json\/wp\/v2\/comments?post=2404"}],"version-history":[{"count":0,"href":"https:\/\/moderncryptotrader.com\/index.php\/wp-json\/wp\/v2\/posts\/2404\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moderncryptotrader.com\/index.php\/wp-json\/wp\/v2\/media\/2405"}],"wp:attachment":[{"href":"https:\/\/moderncryptotrader.com\/index.php\/wp-json\/wp\/v2\/media?parent=2404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moderncryptotrader.com\/index.php\/wp-json\/wp\/v2\/categories?post=2404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moderncryptotrader.com\/index.php\/wp-json\/wp\/v2\/tags?post=2404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}