The purchase of an unsexy building products of the house of $ 5 billion is the main example of Smart M & A

The name “Gypsyum Management and Supply” and Tucker, GMS based on GA, is the most sexual purchase target. However, it still has a wide network of 320 distribution center, which offers something like wall panels, ceilings, steel frames and other construction items. In addition, about 100 tools for GMS, accommodation and commercial contract customers, rental and service centers manage everything related to the reservoir station.

The transaction is followed by $ 18 billion in the significance of $ 18 billion in the SRS distribution last year. This was the largest purchase in the company’s history, the mammoth experts of the house warehouse were aimed at help win a larger share of the contractor segment. These clients usually used the house warehouse and LOWE and the improvement of the house that serves specialists has used retailers with retailers retailers.

With the GMS agreement, SRS will dominate the market for professional suppliers outside the home (roof, pool, yard) and inside (wall board, steel frame and ceilings), Cow & Co. Analytical Max Rahlenko wrote in the research note. Rakhlenko said that SRs will increase additional vertical expansion, expanding the market share, increase industrial consolidation, increase the supply chain and distribution network of HD.

Sunday, no matter what was excited or excited by the GMS news of the house (shares were straightforward on the day of the transaction), a large, thoughtful pivot in his own strategy. Home Depot, as one of the most successful retailers of the last 20 years, has canceled a hot housing market that renovates their homes. But now the house warehouse believes that in the future, the strong growth will not come from a 2000 large box store that serves people who make relatively simple home projects. Instead, you want a share of great orders placed by experts for projects that are more involved in pool devices and roofing. In The first quarter The current financial year, at least one year in US stores, an annual sales of open annual sales indicate this updated strategy, and 0.2%.

“Growing Pro is the main part of our growth strategy,” said Ann-Marie Campbell, the CEO of US stores, the Wall Street Analysts in February.

Deals are reminiscent of the long time for thoughtful home depot and how much it is in a strategy. About 20 years ago, the house depot prepared to M & A to get brands to fill the range in the store. Then in 2010, e-commerce furnished the power of fire and logistics and shops. Recently, in the spotlight, it was in modernizing the range for growing areas such as smart household products.

An approach of this M & A, served well in the famous disciplined retailer and helped in terms of the sale growth of Arch-Rival Lowe: annual sales increased from $ 159.5 billion, decades.

It is refreshed when retail and consumer goods look at many of the many transactions in the world, but it caused great articles instead.

Canadian seller Rona is chasing Rona to sell Lowe’s foothills north of the border only two years ago and charges about $ 2 billion in this process. Kate Spade’nin 13% of the sale in 2017 caused a number of writing. Capri Holdings Recently sold versace with a large loss. Purchasing a few years of the Walgreens Boot Alliance for 2000 Rite Aid Shops have proven to have a large loss of money before this year Coca-cola According to the sale, the dwarf sport wrote $ 760 million and Dollar tree He said the family sold the dollar division into a large loss.

And it goes on and over. 70% of M & A deals are failures. Many of them can feel like a good brand, a desperate brand or an opponent to turn into one’s way to turn to another one of them. Yes, an M & A circuit has concerns that have pinched the edges of home depots as soon as possible. However, the purpose of the House Deputy, the intentional and thoughtful approach of the M & A, paid a large number of money and served as a model for successful companies for success.