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The Man Depot reinforces his offer for professional clients.
The Home Improvement Company has reached an agreement for its subsidiary MrS Distribution to acquire the specialized building distributor GMS Inc, subject to regular closing conditions. A subsidiary of SRS will acquire all shares pending common GMS shares for $ 110 per action for a total capital value of about $ 4.3 billion.
“Acquiring GMS represents a next logical step [Home Depot’s] Deep Disco on the Pro Distribution Channel, “said Wells Fargo analysts directed by Zachary Fadem in e -mail comments Monday.
The agreement, which is expected to close at the end of this fiscal year, will be financed by hand and debt cash. Including debt, the transaction is valued at $ 5.5 billion, companies announced on Monday.
“The combination of GMS and SRS will provide the residential and commercial client with more compliance and service options than ever,” said Dan Tinker, CEO of Mrs. in a statement. “Together, we will 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 papers of jobs a day.”
This movement is expected to accelerate the goals of SRS to become a distributor of buildings of various categories. The GMS business focuses on specialized building materials, such as soils, ceilings, steel frames and other products for residential and residential construction and remodeling projects. It will also expand the SRS distribution footprint in the United States and Canada, said the company in its announcement.
This also strengthens the position of Home Depot among professional clients. The home improvement retailer last year acquired Ms. At that time, Home Depot said that the acquisition expanded its total market from $ 50 billion to $ 1 trillion.
“Home Depot acquired Messrs as a growth platform and SRS continues to show exceptional execution and strong performance,” said Ted Decker, CEO of Home Depot, in a statement. “In our first year of work together, we have captured important synergies, including new products and services offers for sale between Home Depot and SRS clients, advancing the Home Depot Business Credit Program through the SRS platform and many other initiatives designed to promote the customer’s value proposal and operational efficiency. This success gives us confidence that the incorporation of GMS to the SR Platform will allow us to create a more value of GMS platform. big for our customers. “
Man depot and Lowe rival I have been working Earn the Pro Customer segment In recent years. Earlier this year Home Depot named Long Long Company Veteran Michael Rowe as Pro executive vice presidentIn charge of growing the retail business.
To better serve these customers, Home Depot also opened four distribution centers provided with large and bulky products, including wood, insulation and roof tiles.
However, their agreement for MSR to acquire GMS, however, comes at a time when household improvement retailers feel the pressures of a slow housing market. During the first quarter of this year, housing sales decreased by 3.1% year -on -year, according to Globaldata’s research.
For Home Depot, the retailer reported Q1 clean sales grew 9.4% Year after year to $ 39.9 billion, while comparable sales dropped by 0.3%. Billy Basttek, executive Vice President of Merchandising, said in a call in May that Pro CompC’s sales were positive during the quarter and surpassed DIY customers sales.
