A Home Depot store in San Carlos, California, United States, Monday, November 11, 2024.
David Paul Morris | Bloomberg | Getty images
Home Depot said on Monday that he buys GMSA distributor of construction products, for around $ 4.3 billion while the retailer moves to draw more sales from entrepreneurs and other home professionals.
Home Depot’s actions were almost stable on Monday at the start of the negotiation. GMS shares have jumped more than 11%.
As part of the agreement, the subsidiary belonging to Home Depot Distribution SRS will buy all the actions in GMS circulation for $ 110 per share, which represents approximately $ 4.3 billion and is equivalent to the total value of the company, including a net debt of around 5.5 billion dollars, said the company.
Home Depot said it expects the acquisition to be completed in early 2026.
The announcement of Home Depot also concludes a potential tender war between the large area retailer and the billionaire Brad Jacobs. The distributor of products from the Jacobs Qxo building had offered about $ 5 billion in cash to acquire GMs and said that he would advance hostile takeover if the company’s management rejected the proposal.
While Home Depot continues growth, it disappeared after a more stable and more lucrative element of the domiciliary renovation activity: electricians, roofers, renovators of domicile and other professionals who attack large projects all year round and need a lot of supplies. Home Depot said he accelerates along this strategy with the GMS agreement.
Home Depot bought SRS Distribution – The subsidiary which acquired GMS – Last year for 18.25 billion dollars, in The greatest acquisition of its history. SRS, based in Texas, sells supplies to professionals from landscaping, roofing and swimming pool companies and has bought many other small suppliers as it grew up.
The emphasis put by Home Depot on sales to professionals is well timed. The sales of customers to do yourself have slowed down because higher mortgage rates have reduced housing turnover and have attenuated the demand of larger project owners due to higher borrowing costs.
The company said that it expects total sales to increase 2.8% for full financial year and comparable sales, which eliminate the impact of unique factors such as store openings and calendar differences, to increase by around 1%.