Home Depot to Buy GMS for $4.3 Billion to Expand Contractor Base

Home Depot Inc. has agreed to acquire specialty building products distributor GMS Inc. for $4.3 billion, its latest effort to grab more spending from professional contractors.

The home improvement retailer’s subsidiary SRS Distribution Inc. will purchase the distributor of building products such as drywall and ceilings.

The deal values GMS at $110 per share, 13% higher than its closing price on Friday. GMS rose to $108.19 at 9:31 a.m. in New York. Home Depot’s stock was little changed.

Pro contractors are lucrative to retailers because they typically spend more than do-it-yourself consumers. Home Depot’s pro unit has outpaced DIY ...