The world’s largest home improvement retailer, Home Depot, announced plans to acquire GMS, a leading North American specialty building products distributor, for $5.5 billion. The all-cash deal is expected to close before January 31, 2026, subject to customary closing conditions.
The merger “will provide the residential and commercial professional contractor customer with more fulfillment and service options than ever before,” according to the deal’s press release. “Together, well 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.”
The U.S. home improvement eclipsed $400 billion last year and is projected to expand at a faster pace during 2025. Driven by HGTV and social media trends, homeowners have shown increased interest in upgrading and customizing their homes. Whether they DIY (do it yourself) or outsource the work, most supplies are purchased from big box stores such as Home Depot and Lowe’s.
Source: Global Market Insights
“The business of homeownership represents a significant portion of the world economy, with many consumers worldwide wishing to make their homes more attractive and functional,” according to analysts at Statista. “In recent years, they also opt to make their homes smarter by introducing integrated and interconnected devices that automate various functions around the home.”
Source: Home Improvement Research Institute
Home improvement was propelled during the covid-19 pandemic by low interest rates and homeowners’ desire to improve their surroundings during the lockdowns. But resulting supply shortages, coupled with rapidly rising prices – and then interest rates – led to a sharp decline in the industry into 2023. Home improvement stagnated in 2024, but is projected to experience moderated growth into 2028, as depicted in the chart above. North American sales dominate the industry, as depicted below.
Source: Global Market Insights
According to DealPulse’s M&A database, which harnesses both AI and attorneys to digest the granular deal points of publicly announced transactions, Home Depot is advised Weil, Gotshal & Manges LLP, while GMS is advised by Alston & Bird LLP.
