Home Depot to buy GMS at $4.3 billion value to boost pro unit

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, ceilings and other products.

The deal values GMS at $110 per share, 13% higher than its closing price on Friday. GMS rose as high as $108.99 in premarket trading. Home Depot’s stock was little changed.

Pro contractors are lucrative to home-improvement retailers because they typically spend more than do-it-yourself consumers. Atlanta-based Home Depot made its biggest acquisition last year by shelling out $18.25 billion for SRS Distribution, and the latest deal will broaden SRS’s footprint in exterior materials across the U.S. and Canada.

Lowe’s Cos. agreed to buy interior services provider Artisan Design Group for about $1.3 billion earlier this year.

Home Depot has its sights set on bigger customers, while Lowe’s is focused on catering small to medium-sized contractors. Both retailers are seeking to get back to growth after high interest rates prompted consumers from undertaking new housing projects or buying new homes.