Home Depot announced that it has entered into a definitive agreement for
its subsidiary, SRS Distribution Inc. (鈥淪RS鈥�), to acquire GMS Inc.
(鈥淕MS鈥�), a specialty building products distributor.
According to Home Depot, the acquisition of GMS adds a new vertical that
is adjacent to SRS鈥檚 existing business. GMS distributes drywall, ceilings,
steel framing and other complementary products, and will broaden its
distribution footprint across the U.S. and聽Canada.
John C. Turner, Jr., president and CEO, as well as his senior leadership
team, will continue to lead GMS as part of the SRS organization.
Transaction Terms
Under the terms of the agreement, SRS will purchase all outstanding
shares of GMS common stock for聽$110聽per share, reflecting a total equity
value of approximately聽$4.3 billion聽and implying a total enterprise value
(including net debt) of approximately聽$5.5 billion. The consummation of the
tender offer is subject to customary closing conditions and is expected to
be completed by the end of fiscal 2025.
