Home Depot Inc. (HD) Acquiring GMS to Target Contractors and Home Professionals

The Home Depot, Inc. (NYSE:HD) is one of the 12 best consumer goods stocks billionaires are quietly buying. On June 30, the company announced it is buying building products distributor GMS. The company is paying $4.3 billion for the acquisition as it seeks to increase sales from contractors and home professionals.

Home Depot Inc. (HD) Acquiring GMS to Target Contractors and Home Professionals

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The acquisition, poised to close early next year, brings to an end a potential bidding war between Home Depot and billionaire Brad Jacobs. Jacob’s building products distributor, QXO, had offered to acquire GMS for $5 billion in cash and stated that it would push forward with a hostile takeover.

The purchase of GMS underscores Home Depot’s focus on selling to professionals as sales to do-it-yourself customers have slowed significantly. Higher mortgage rates have decreased housing turnover and dampened homeowners’ demand for larger projects. The company now expects its full-year sales to grow by 2.8%.

The Home Depot, Inc. (NYSE:HD) is a home improvement retailer that provides a wide range of products and services for homeowners and professionals. It offers a wide range of products, including appliances, building materials, tools, and decor, as well as installation and repair services.

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Disclosure: None. This article is originally published at Insider Monkey.