Despite sales tax, home depots have not increased prices as sales exceed expectations
Home Depot has announced that it will not raise prices due to tariffs, as other big box stores say they have to raise prices.
Straight Arrow News
Home Depot has completed its acquisition of building materials Distributor GMS Inc. in a $5.5 billion transaction. The company announced on Thursday, September 4th, as it continues to seek more business from professional contractors.
The Atlanta, Georgia-based home improvement retailer first announced its acquisition in June.
Home Depot completed the transaction through SRS Distribution Inc., a subsidiary of a roof distributor that acquired in March 2024 in a large $18 billion transaction.
In a news release, Home Depot said that both Distributor, GMS and SRS will provide “more fulfillment and service options” to specialist contractors.
Edward “Ted” Decker, president and CEO of Home Depot, said in the release that the company “hopes to serve professionals across the project.”
What is GMS?
Gypsum Management & Supply, also known as GMS, is a distributor of specialized building products such as Drywall, Ceilings and Steel Framing, according to Home Depot.
Additionally, GMS has other products for residential and commercial remodeling and construction projects, the news release added.
According to the GMS website, the company began operating in 1971 and currently has over 300 distribution centres in the US and Canada. It is unclear whether any of the centres will be closed under Home Depot’s ownership.
Home Depot continues pushing to attract professional contractors
Home Depot announced the completion of the acquisition, focusing on “increasing wallet share” with professional contractors, the company said.
“The company builds differentiated products and capabilities to better deal with professionals across projects, from large and complex tasks to small renovations and repairs,” the release reads.
When the company acquired the SRS distribution, it said SRS would operate as an independent business within Home Depot.
SRS said its role is to grow Pro Business at Home Depot. This includes contractors who usually work on projects to purchase supplies, either through wholesale or specialized distributors.
In the acquisition of GMS, Home Depot and its subsidiary Gold Acquisition Sub, Inc. has accepted a payment of $110 per share, according to the company.
Through this agreement, GMS is now a direct subsidiary of SRS and an indirect, fully owned subsidiary of Home Depot.
Contribution: Eric Lagatta/ USA Today
Melina Kahn is a national trending reporter for USA Today. She can be contacted at melina.khan@usatoday.com.
