Home Depot acquired GMS to Market the Pro Market, but it may be to pay over sums at $ 4.3 billion

The company says that GMS will help develop its professional business (Pro), which also helped by Home Depot for 2024 from SRS This helped to consolidate the home of roofing, landscape and retail retail, according to the company’s announcement.

While analysts say the acquisition of the Home Depot for GMS will help strengthen the company’s position as a leading distributor in building products, the home improvement company may have paid a lot for that.

Although “strategic logical basis is sound, with additions, category widening, and delivery capabilities”, Home Depot has paid 11 times from EBITDA from GMS (profits before benefits, taxes, destruction and firefighting), Raymond James analysts wrote in a memorandum published on Monday. “This discussion may be between some investors,” they added.

Under the terms of the agreement, SRS will buy from Home Depot all suspended shares from the GMS Common Stock for $ 110 per share, up to $ 4.3 billion. The deal is expected to be completed by the end of this fiscal year.

Home Depot rejected luckRequest to comment on whether the company increases payment in the GMS acquisition.

However, Raymond James analysts said they see this acquisition put a home warehouse as “No. 1 clear in Dreamwall distribution”, before the FBM owned by special classification. The acquisition is also a “pressure escalation” on other home improvement companies such as Lowe’s and QXO (formerly a beacon building products), according to Raymond James, who added the acquisition helps Home Depot to expand Drywall, roofs, and framing steel.

After the acquisition, the Home Depot will provide more loyalty and service options “more than ever”, according to the company’s statement, by creating a network of more than 1,200 sites and a least of more than 8,000 trucks. Dan Tinker, CEO of SRS, said in a statement that this would allow tens of thousands of employee delivery operations every day.

“Home Depot has acquired SRS as a growth platform, and SRS continues to show exceptional implementation and strong performance,” said Ted Decker, President, President and CEO of Home Depot. “This success gives us confidence that adding GMS to the SRS platform will allow us to create more value to our customers.”

Raymond James wrote in their conclusion that if Home Depot can detail and provide higher growth in profits per share (EPS) and profits before interest and taxes (EBIT), then they “expect investors to look at the highest paid installment and watch the acquisition positively.”