GMS Inc. to be acquired by Home Depot subsidiary for $110 per share

GMS Inc. (GMS) announced the company has entered into a definitive agreement with Home Depot (HD) to be acquired by its specialty trade distribution subsidiary, SRS Distribution. Under the terms of the agreement, a subsidiary of SRS will commence a tender offer to acquire all outstanding shares of GMS common stock for $110.00 per share, for a total enterprise value of approximately $5.5B. John Turner Jr., president and CEO of GMS, and GMS’ senior leadership team, will continue to lead GMS as part of the SRS organization. Under the terms of the merger agreement, a subsidiary of SRS will commence a cash tender offer to purchase all outstanding shares of GMS common stock for $110.00 per share, reflecting a total equity value of approximately $4.3B and implying a total enterprise value of approximately $5.5B. The $110.00 per-share consideration represents a premium of approximately 36% to GMS’ unaffected share price as of June 18, 2025. The transaction is expected to close by the end of Home Depot’s current fiscal year, subject to customary closing conditions, including regulatory approvals and the tender of a majority of the shares of GMS common stock then outstanding. If the tender offer is successfully completed, a wholly owned subsidiary of SRS will merge with and into GMS, and all of the outstanding shares of GMS that were not tendered in the tender offer will be converted into the right to receive the same $110.00 per share in cash offered to GMS shareholders in the tender offer. The Home Depot expects to fund the transaction through cash on hand and debt.