Just over a week after receiving two offers, GMS has entered into a definitive agreement with The Home Depot to be acquired by its subsidiary SRS Distribution.

Under the agreement, a subsidiary of SRS will launch a cash tender offer to acquire all outstanding shares of GMS common stock for $110.00 per share, valuing the company at approximately $4.3 billion in equity and $5.5 billion in enterprise value. The offer represents a 36% premium to GMS’s share price as of June 18.

Prior to this, building materials distributor QXO announced on June 18 that it made an offer for GMS for $95.20 per share, which represents a deal value of approximately $5 billion and a 27% premium over GMS’ 60-day volume-weighted average share price.

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The transaction is expected to close by January 31, subject to regulatory approvals and majority shareholder acceptance. If completed, untendered shares will be converted into cash at the same offer price. The Home Depot plans to fund the deal with cash and debt.

“We are excited to join with SRS and The Home Depot, and we believe this transaction delivers significant value to our shareholders, customers, suppliers and team,” GMS President and CEO John Turner said in the June 30 news release. “Since GMS’ founding, we have never strayed from our commitment to be the best distributor in our end markets and provide outstanding service for our customers. We look forward to providing an even wider breadth of product and service offerings while delivering superior value to our professional contractor customers as part of SRS and The Home Depot family.”

SRS CEO Dan Tinker added: “The combination of GMS and SRS will provide the residential and commercial professional contractor customer with more fulfillment and service options than ever before. Together, we’ll 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 jobsite deliveries per day.”

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Turner and GMS’s senior leadership team will remain in place and continue to lead the company within the SRS organization.

Home Depot acquired SRS Distribution last year for $18.25 billion, including debt, accelerating its growth with the residential professional customer, allowing it to better serve the “complex purchase occasion.”