Home Depot Bolsters Pro Business with Purchase of Large Building Products Distributor

GMS Inc., Tucker, GA, a large North American specialty building products distributor, that sells wallboard, ceilings, steel framing and complementary construction products to professional contractors and operates nearly 100 tool sales, rental and service centers, signed a deal with Home Depot, to be acquired by its specialty trade distribution subsidiary, SRS Distribution (SRS). SRS focuses on the sale of roofing products, siding, windows, doors, coatings & sealants and solar solutions.

According to an AP report, the deal is worth about $5.5 billion, including debt.

Founded in 1971, GMS has a network of more than 320 distribution centers and focuses on a operating model that it says combines the benefits of a national platform and strategy with a local go-to-market focus, enabling it to generate significant economies of scale while maintaining high levels of customer service. SRS Distribution, is a wholly owned subsidiary of Home Depot that sells a family of distinct local brands in more than 800 locations across 48 states.

Ted Decker, chair, president and CEO of The Home Depot, said in the press release, “The Home Depot acquired SRS as a platform for growth, and SRS continues to demonstrate exceptional execution and strong performance. In the first year of working together, we’ve captured significant synergies, including cross-selling new products and service offerings to both Home Depot and SRS customers, advancing Home Depot’s enterprise trade credit program through the SRS platform, and many other initiatives designed to drive the customer value proposition and operational efficiency.”

Dan Tinker, CEO of SRS added in the release, “The combination of GMS and SRS will provide the residential and commercial professional contractor customer with more fulfillment and service options than ever before. Together, we’ll create a network of more than 1,200 locations and a fleet of more than 8,000 trucks capable of making tens of thousands of jobsite deliveries per day."

Home Depot operates more than 2,350 retail stores, over 800 branches and more than 325 distribution centers that directly fulfill customer orders across all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The company employs over 470,000 associates.

SRS Distribution, a wholly owned subsidiary of The Home Depot, currently operates under a family of distinct local brands encompassing more than 800 locations across 48 states.