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Home Depot (HD) has announced its acquisition of GMS Inc. (GMS) for $4.3 billion, or $5.5 billion including debt. This deal aims to enhance Home Depot’s offering to professional contractors and is expected to close by the end of 2025 or early 2026. GMS, a distributor of wallboard and suspended ceiling systems, will bolster Home Depot’s position in the specialty building products sector.
Following the acquisition announcement, GMS stock rose by 11%, while Home Depot shares experienced a slight decline. GMS has achieved a 30% year-to-date increase, significantly outperforming the S&P 500’s 5% and Home Depot’s -4%. Over the past three years, GMS has gained 140%, surpassing broad market gains of 64% and Home Depot’s 34%.
Looking ahead, GMS’s total sales for fiscal year 2026 are estimated to remain flat, with a projected increase of 3% in FY27 to $5.68 billion. Home Depot anticipates a 3% sales growth in FY26, reaching $171.66 billion, and a rebound of 9% in EPS to $16.41 in FY27.
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