Home improvement chain Home Depot is buying GMS Inc., a specialty building products distributor, in a deal valued at roughly $4.3 billion, the Associated Press reports. The transaction is aimed at strengthening Home Depot’s relationship with professional contractors.
GMS distributes products including drywall, ceilings, steel framing and other complementary construction and remodeling products in residential and commercial markets.
A subsidiary of Home Depot’s SRS Distribution Inc. will start a cash tender offer to buy all outstanding shares of GMS for $110 per share as part of the deal. Last year, Home Depot purchased the materials provider, SRS Distribution, in a deal valued at around $18.25 billion including debt. SRS provides materials for professionals like roofers, landscapers and pool contractors.
The GMS transaction is expected to close by the end of the fiscal year.
