Although home renovation shows and do-it-yourself projects might not be for everyone, those who grew up with handy fathers have a nostalgic connection to this niche world.
When running errands with our dads to look for home renovation materials, one retail chain stands out in most people's minds.
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Upon entering the store's automatic doors, the orange logo plastered all over the walls and the smell of lumber are instantly recognizable.
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Home Depot is the world's largest home improvement retailer with over 2,300 locations across the U.S., Canada, and Mexico.
This retail chain sells more than 35,000 products in-store and 1 million online, ranging from lawn supplies to home improvement materials.
Home Depot acquires a major asset
Home Depot (HD) announced that it has entered a definitive agreement with specialty building products distributor GMS to acquire it for approximately $4.3 billion.
As stipulated in the deal, Home Depot's subsidiary SRS Distribution will purchase all outstanding shares of GMS common stock for $110.00 per share, for a total enterprise value including net debt of around $5.5 billion.
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Home Depot acquired SRS Distribution, the Texas-based building products distributor, last year for $18.25 billion, marking its largest acquisition ever.
This big win comes after major building products provider QXO had submitted a $5 billion cash bid for GMS.
The transaction in Home Depot's latest acquisition is expected to be completed by the end of January 2026.
Home Depot seals huge deal to boost growth
This latest acquisition aims to boost Home Depot's sales by attracting home professionals and contractors willing to spend more than a few bucks on light bulbs.
With the company's business coming mainly from U.S. shoppers, it has diversified its products' sourcing so it doesn't heavily rely on foreign imports, aiming for no more than 10% coming from a single country amid looming tariffs.
Additionally, high interest rates and economic uncertainty have slowed the housing market, decreasing homeowners' demand for Home Depot's main products, since they are not investing to the extent of home professionals.
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Although Home Depot missed analysts' predicted Earnings Per Share during the first quarter of 2025, the company still reaffirmed its fiscal 2025 guidance, expecting total sales to grow 2.8%.
GMS joining Home Depot will allow it to offer more fulfillment and service options, attracting a more constant and lucrative market amid so much economic uncertainty.
“Together, we’ll create a network of more than 1,200 locations and a fleet of more than 8,000 trucks capable of making tens of thousands of jobsite deliveries per day,” said SRS Distribution CEO Dan Tinker in the announcement.
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