Home Depot Expands with Big Buy

Home Depot just made a huge move. They are buying GMS, a company that sells building supplies, for a whopping $4. 3 billion. This deal is all about Home Depot wanting to sell more to professionals like electricians, roofers, and renovators. These folks buy a lot of supplies and do big projects all year round. The deal is expected to wrap up by early 2026. Home Depot's subsidiary, SRS Distribution, is the one making the purchase. They will pay $110 for each share of GMS. Including debt, the total cost is around $5. 5 billion. This isn't Home Depot's first big buy. Last year, they spent $18. 25 billion on SRS Distribution, their biggest purchase ever. SRS sells supplies to pros in landscaping, roofing, and pool businesses. They've been growing by buying smaller suppliers too. There was some drama here. Another company, QXO, tried to buy GMS for about $5 billion. They even threatened to take over GMS if they didn't accept the offer. But Home Depot's deal seems to have won out. Shares of Home Depot stayed flat on the news, but GMS shares jumped over 11%. This deal shows Home Depot is serious about growing its business with professionals. It's a big step in their strategy to focus on bigger, more steady sales.