Home Depot acquires building material distributor GMS in $5.5 billion deal

Key Takeaways:

• Home Depot’s $5.5 billion acquisition of GMS Inc.
• GMS specializes in building material distribution
• The deal aims to expand Home Depot’s reach among professional contractors
• Reflects a growing trend in mergers and acquisitions
• Published in USA TODAY on 2025-09-06

Deal Overview
Home Depot has officially acquired GMS Inc. in a transaction valued at $5.5 billion. GMS, a building material distributor, joins Home Depot’s portfolio at a time when demand among professional contractors is on the rise. According to details from USA TODAY, the agreement is set to bolster Home Depot’s supply offerings in the home improvement industry.

Strategic Importance
By integrating GMS Inc., Home Depot aims to enhance its ability to meet the needs of professional contractors—an audience it has been steadily courting. The purchase provides Home Depot with access to additional building materials and distribution networks, elevating the retailer’s position in a competitive market.

Professional Contractors in Focus
At the core of this acquisition is Home Depot’s continued focus on expanding business-to-business services. The store’s existing customer base of industry professionals will benefit from a larger and more specialized product assortment, thanks to GMS’s expertise in building materials.

Market Context
This deal demonstrates how major retailers in the home improvement space are turning to mergers and acquisitions to maintain a competitive edge. As demand for specialized products grows, big-name companies like Home Depot stand to benefit from acquiring established distributors with strong supply chains and established customer relationships.

Looking Ahead
While the immediate effects of the $5.5 billion agreement remain to be seen, the acquisition signals Home Depot’s ongoing push to strengthen its contractor-focused business. Observers will be watching how this move shapes the retailer’s relationships with both DIY customers and professional contractors, setting the stage for potential new opportunities in the home improvement sector.