Good morning. Retailer Home Depot has been in business for nearly 50 years, and its disciplined approach to dealmaking has contributed to its solid growth.
That’s the topic my colleague Phil Wahba explores in a new Fortune article. Home Depot, No. 24 on the Fortune 500, announced this week that one of its business units is acquiring building-products distributor GMS (Gypsum Management and Supply) for about $4.3 billion, prevailing in a bidding war. The deal follows Home Depot’s $18 billion acquisition last year of SRS Distribution (which is the entity actually buying GMS)—the largest acquisition in the company’s history.
According to Wahba, these acquisitions mark a shift in Home Depot’s strategy. In the first quarter of the current fiscal year, sales at U.S. stores open at least a year rose just 0.2%, highlighting the need for change.
“Home Depot is widely viewed as one of the most successful retailers of the last 20 years, one that has deftly leveraged a hot housing market that led to more people renovating their homes,” Wahba writes. The company now anticipates that future growth will not come solely from its 2,000 big-box stores serving DIY customers, but increasingly from large orders placed by professionals for more complex projects, such as roof repairs.
GMS, based in Georgia, operates a network of about 320 distribution centers offering wallboard, ceilings, steel framing, and other construction materials. It also runs roughly 100 tool sales, rental, and service centers for residential and commercial contractors—“all things Home Depot covets,” according to Wahba.
Home Depot has long been thoughtful about its M&A strategy, Wahba notes, a discipline that has helped it outperform archrival Lowe’s in sales growth. You can read the complete article here.
Home Depot isn’t the only major U.S. company active in M&A this year. For example, tech giant HPE (Hewlett Packard Enterprise) announced on Wednesday the acquisition of Juniper Networks for approximately $14 billion. “This strategic transaction accelerates our transformation to a higher-margin, higher-growth portfolio and positions HPE for long-term, profitable revenue expansion,” HPE CFO Marie Myers stated in a LinkedIn post.
The Americas led global M&A with $908 billion in deal value in the first half of 2025 (61% of the total), up from $722 billion (55%) the previous year, according to PwC’s mid-year M&A update.
Meanwhile, Bain & Company reports that some companies are not allowing tariffs—or the changed economic world order they represent—to derail M&A activity.
With disciplined dealmaking and a focus on long-term growth, many companies are positioning themselves to thrive.
The next CFO Daily will be in your inbox on Monday. Enjoy the July Fourth holiday.
Sheryl Estradasheryl.estrada@fortune.com
This story was originally featured on Fortune.com
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