(Jeff Chiu/Associated Press)
Home Depot Inc. has agreed to acquire specialty building products distributor GMS Inc. for $4.3 billion, its latest effort to grab more spending from professional contractors.
The home improvement retailer’s subsidiary SRS Distribution Inc. will purchase the distributor of building products such as drywall, ceilings and other products.
The deal values GMS at $110 per share, 13% higher than its closing price on June 27. GMS rose as high as $108.99 in premarket trading. Home Depot’s stock was little changed.
Home Depot ranks No. 50 on the Transport Topics Top 100 list of the largest private companies in North America. SRS ranks No. 6 on the TT list of the top building materials carriers.
Pro contractors are lucrative to home-improvement retailers because they typically spend more than do-it-yourself consumers. Atlanta-based Home Depot made its biggest acquisition last year by shelling out $18.25 billion for SRS Distribution, and the latest deal will broaden SRS’s footprint in exterior materials across the U.S. and Canada.
Lowe’s Cos. agreed to buy interior services provider Artisan Design Group for about $1.3 billion earlier this year.
Lowe’s ranks No. 15 on the Transport Topics list of the top private wholesale/retail carriers.
Home Depot has its sights set on bigger customers, while Lowe’s is focused on catering small to medium-sized contractors. Both retailers are seeking to get back to growth after high interest rates prompted consumers from undertaking new housing projects or buying new homes.
