Home Depot announced that it has entered into a definitive agreement for its subsidiary, SRS Distribution Inc. (“SRS”), to acquire GMS Inc. (“GMS”), a specialty building products distributor.

According to Home Depot, the acquisition of GMS adds a new vertical that is adjacent to SRS’s existing business. GMS distributes drywall, ceilings, steel framing and other complementary products, and will broaden its distribution footprint across the U.S. and Canada.

John C. Turner, Jr., president and CEO, as well as his senior leadership team, will continue to lead GMS as part of the SRS organization.

Under the terms of the agreement, SRS will purchase all outstanding shares of GMS common stock for $110 per share, reflecting a total equity value of approximately $4.3 billion and implying a total enterprise value (including net debt) of approximately $5.5 billion. The consummation of the tender offer is subject to customary closing conditions and is expected to be completed by the end of fiscal 2025.
 

Source:  fastcompany.com