The U.S. professional building materials market could experience a revolution in the wake of recent developments. On June 30, Home Depot’s SRS Distribution announced that it is buying GMS Inc. The Atlanta-based drywall specialist competed with QXO in a bidding war and won the day.
The merger will create an organization with more than 8,000 trucks and 1,200 locations. According to Dan Tinker, CEO of SRS, the merger of the two companies will provide Pro’s residential and commercial customers with more options than ever before.
SRS Distribution
SRS Distribution is a U.S. based company, founded in 2008, headquartered in McKinney, Texas. It has specialized in construction sectors, including roofing, landscaping, swimming pools, and also with the option of hiring professional contractors.
Over the years, it has become one of the largest distributors of building materials in the United States. On March 28, 2024, it was acquired by The Home Depot, creating the country’s most powerful construction companies.
The Home Depot
After Lowe’s and OBI GmbH & Co., it is one of the largest DIY retailers in the world. Offers products and services such as home improvement, hardware, DIY and construction materials.
Founded in 1978 in Marietta, Georgia, I announced the purchase of SRS Distribution in March 2024 to create a larger and more powerful organization within the construction industry.
Home Depot’s SRS Distribution
Since last March 2024, the two companies have merged under the name Home Depot’s SRS Distribution.
The goal of both was to merge and join forces to be a more powerful competitor in the market, which they did. The company has positioned itself as one of the main distributors in the country. This transaction was worth $18.25 billion, so it was a huge reversal.
The company continues to grow
The expansion of The Home Depot continues. The company bets on the merger and acquisition of more large companies in the market to become the undisputed leader.
That is why on 30 June 2025, I announced the purchase of the company GMS Inc.. This company has a worldwide presence, and is specialized in drywall, roofs, steel structures and other building materials. The purchase was not an easy task, as it had to compete with other interested companies such as QXO. QXO is another market leader founded by Bradley Jacobs.
Like its competitors, this company aims to become a global leader in the distribution of construction materials, which is why it also acquired Beacon Building Products.
Reuters reported that “QXO made an offer of $95.20 per share, or about $5 billion in cash, and said it was prepared for a hostile takeover if GMS management did not accept the proposal by June 24”. However, this veiled warning did little good, as it was Home Depot’s SRS Distribution that won the day.
Home Depot’s SRS Distribution and GMS
The company offered a total of $4.3 billion for GMS, adding $5.5 billion if debt was added. That’s $110 per share, which drove the stock up 11.8%, making it a historic closing price. Following the acquisition, SRS’ CEO stated that “the combination of GMS and SRS will provide Pro’s residential and commercial customers with a higher degree of satisfaction and service. In fact, combining the current SRS locations with those of GMS, we would be looking at a company with a total of more than 1,200 locations and more than 8,000 trucks.
Undoubtedly, this new era of The Home Depot’s SRS Distribution and GMS poses a real threat to competing companies in the market. The merger and acquisition of large companies with others of similar or smaller size is becoming more and more common, with the aim of joining forces and competing in an extremely expensive and competitive market.
