11:21 AM EDT, 06/30/2025 (MT Newswires) -- A Home Depot ( HD ) unit will acquire GMS (GMS) for roughly $4.3 billion, the companies said Monday, less than two weeks after QXO (QXO) announced that it had offered to purchase the building products distributor.

Home Depot's ( HD ) SRS Distribution will launch a cash tender offer to purchase GMS shares for $110 per share, reflecting an equity value of about $4.3 billion and implying an enterprise value of $5.5 billion, according to the companies' separate statements.

GMS said that the per-share consideration represents a premium of 36% to its share price as of June 18, when roofing-products distributor QXO announced after market close a proposal to acquire GMS for $95.20 per share in cash.

"We are excited to join with SRS and The Home Depot ( HD ), and we believe this transaction delivers significant value to our shareholders, customers, suppliers and team," said GMS Chief Executive John Turner Jr., who will remain at the helm of the company within the SRS organization.

Shares of GMS jumped 12% intraday. Home Depot ( HD ) fell 1%, while QXO rose 3.1%.

Home Depot ( HD ) said that the GMS deal expands distribution offerings and capabilities for pro customers. The home improvement retailer expects the transaction to be accretive to adjusted earnings per share in the first year after closing, excluding synergies.

Truist Securities said in a note that Home Depot ( HD ) continues to expand in the pro category and that GMS "should be very complementary" to its core initiatives. "Just as SRS focused on a very specific vertical within the contractor space (roofing), GMS primarily specialized in indoor construction materials for both residential and commercial building projects and this acquisition should provide Home Depot ( HD ) with even more clout with general contractors," analysts including Scot Ciccarelli said.

The deal is anticipated to complete by the end of January next year, subject to regulatory approvals and a majority of GMS shares being tendered in the tender offer.

"The combination of GMS and SRS will provide the residential and commercial pro customer with more fulfillment and service options than ever before," said SRS CEO Dan Tinker. "Together, we'll create a network of more than 1,200 locations and a fleet of more than 8,000 trucks capable of making tens of thousands of jobsite deliveries per day."

A QXO spokesman declined to comment.

"Following careful consideration of The Home Depot's ( HD ) proposal, along with other potential opportunities for the company, our board determined that this transaction is in the best interests of GMS and all of our shareholders," GMS Chair John Gavin said.

Price: 108.92, Change: +11.59, Percent Change: +11.91