Home Depot SRS Distribution buys GMS
On Monday, November 11, 2024, San Carlos, California, a home depot store in the USA.
David Paul Morris | Bloomberg | Getty Images
Home warehouse He said he bought it on Monday GMSAs it takes action to make more sales than retailers and other home professionals, a building products distributor for about $ 4.3 billion.
Home Depot shares dropped about 1% on Monday. GMS shares increased by about 12% and reached the highest level of 52 weeks.
As a part of the agreement, the distribution of Home Depot will purchase all unpaid shares of GMS for $ 110 per share, and that it will purchase up to approximately $ 4.3 billion and including a net debt of approximately $ 5.5 billion.
Home Depot said he expected the purchase to be completed in the beginning of 2026.
Home Depot’s announcement also completed a potential proposal war between large box retailer and billionaire Brad Jacobs. Jacobs’s building products distributor QXO offered about $ 5 billion in cash to buy GMS and said the company would proceed forward with an hostile acquiring if the company rejects the offer.
While the Home Depot chased growth, he went after a more stable and more lucrative part of home development: electricians, roofers, home renovates and other professionals who struggle with big projects throughout the year and need too much materials. Home Depot said it accelerates this strategy with the GMS agreement.
Home Depot acquired the subsidiary – SRS distribution that obtained GMS for 18.25 billion dollars last year The biggest purchase in history. Texas -based SRS sells materials to professionals in landscapes, roofing and pool works and bought many other small suppliers as they are raised.
Home Depot is good time for professionals to focus on sales. Sales from Yap your customers slowed down because higher mortgage rates reduced housing turnover and reduced the demand of hosts to larger projects due to higher borrowing costs.
The company said that the total sales expect to grow by 2.8% for the full financial year and expects comparable sales that meet the effect of one -time factors such as store openings and calendar differences with an increase of approximately 1%.
