Home Depot Hammers Out $4.3B Deal for Supplier GMS as Retailer Battle for Pro Customers Intensifies

Home DepotHD

just found the blueprint for capturing contractors: buy the company that already has them. The retailer is acquiring building materials distributor GMSGMS

for $4.3B, marking another strategic move to access the professional contractor market. This deal follows Home Depot’s $18.25B purchase of SRS Distribution last year, creating a distribution powerhouse that’s leaving competitors scrambling for market share.

• Pro customers typically account for ~50% of Home Depot’s total sales, far outpacing rival Lowe’sLOW
  , whose professional segment makes up just 25-30%.
• Now, the combined SRS-GMS network will operate over 1.2K locations with 8K delivery trucks — enabling tens of thousands of daily jobsite deliveries to contractors nationwide.

Building momentum: Home Depot’s aggressive acquisition strategy couldn’t come at a better time. With DIY sales slumping amid higher mortgage rates and stagnant housing turnover, the retailer faces a mere 2.8% growth forecast — making professional customers critical for future success. While Lowe’s has fired back with its own $1.3B Artisan Design Group acquisition targeting interior finishes and homebuilders, Home Depot’s early moves in the contractor space may have already laid the groundwork for lasting dominance.