In HD’s latest move to expand its contractor business, the big chain has bought building materials distributor GMS. It was a spirited fight but in the end, Home Depot was the winner. After private equity-backed dealmaker QXO, fresh off its acquisition of Beacon Roofing Supply this spring, made an initial offer to buy Georgia-based Gypsum Management & Supply Inc., Depot entered the bidding and emerged as the winner with a $5.5 billion offer. The deal is expected to close by January of 2026, the end of Depot’s fiscal year. For the giant home improvement chain, it’s another step in its increasing focus on the pro side of its business, which, while small by headcount compared to DIYers, accounts for the vast majority of its revenues. In June of 2024, it bought another big distributor, SRS, for $18.25 billion, one of its biggest deals ever. SRS was the subsidiary that is was buying GMS and the two units will be merged once the acquisition is completed. Both deals follow Depot’s repurchase of its one-time subsidiary HD Supply in 2020, which signaled its initial efforts to beef up its pro business. These moves come as the DIY business has slowed with the continued softness in the housing market. With GMS, SRS now controls multiple verticals both outside the home (roofing, pool, yard) and inside (GMS is 40 percent wallboard, 14 percent steel framing, 14 percent ceilings, 31 percent complimentary products). Additionally, GMS will also allow SRS/HD to enter the commercial market (commercial expected to be 55 percent of GMS’ revenues through the cycle). HD sees opportunity to both increase wallet share and add incremental customers. (ICE HOUSTON)

Fonte notizia: IWF