Home Depot clears one hurdle for acquisition of distributor GMS

Vinings-based Home Depot has cleared a key hurdle for a $5.5 billion acquisition of specialty building products distributor GMS Inc.

The home improvement giant announced Thursday that the U.S. Department of Justice ended its waiting period for antitrust clearance early.

That satisfies one of the conditions for the acquisition of Tucker-based GMS by Home Depot subsidiary SRS Distribution, a deal that was first announced in June.

ExploreHome Depot makes $5.5B acquisition to increase business with pro contractors

The transaction is still subject to clearance from Canadian authorities, and Home Depot’s current tender offer for the deal expires at 11:59 p.m. Friday evening. Home Depot previously extended its tender offer from Aug. 8 to Aug. 22, and it could be extended further.

The GMS acquisition is part of a broader strategy by Home Depot to gain more business from professional contractors for everything from small renovations and repairs to large, complex projects.

Home Depot acquired specialty trade distribution subsidiary SRS Distribution last year for $18.3 billion, bringing the distributor of roofing, landscaping and pool supplies under its umbrella.

ExploreHome Depot sees customers defer big projects, ‘modest’ tariff price movement

GMS was founded in 1971 as Gypsum Management & Supply and expanded to become a key distributor of drywall, ceilings, steel framing and other specialty building products. The publicly traded company has more than 300 distribution centers and operates nearly 100 tool sales, rental and service centers.

Home Depot plans to buy all GMS shares through a cash tender offer for $110 per share.

Its deal came after another company, QXO Inc., in mid-June proposed to acquire GMS for about $5 billion, at $95.20 per share.

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