The Home Depot to acquire SRS Distribution for $18.25 billion

by | Apr 18, 2024

The Home Depot has entered into a definitive agreement to acquire SRS Distribution Inc. (SRS), a leading residential specialty trade distribution company across several verticals serving the professional roofer, landscaper and pool contractor.

SRS is set to accelerate The Home Depot’s growth with residential professional customers. The acquisition will enable the company to better serve complex project purchase occasions with the renovator/remodeler, while also establishing The Home Depot as a leading specialty trade distributor across multiple verticals.

With this acquisition, The Home Depot now believes its total addressable market is approximately one trillion dollars, a considerable increase of approximately $50 billion.

“SRS is an industry leader with a proven track record of profitable growth across verticals,” said Ted Decker, Chair, President, and Chief Executive Officer of The Home Depot.

“SRS’s ability to build leadership positions in each of its trade verticals while generating significant revenue growth is a testament to its strong vision, leadership, culture and execution. SRS has built a robust and successful platform that will accelerate our growth with the residential professional customer while presenting future opportunities with the specialty trade pro.”

“SRS’s branch network, coupled with The Home Depot’s 2,000-plus United States stores and distribution centers, comprehensive product offering, and extensive pro brands, provides the residential pro customer with more fulfillment and service options than ever before. I look forward to welcoming the entire SRS team to The Home Depot and capturing the exciting opportunity ahead,” Mr Decker said.

SRS’s 2,500-plus professional sales force and 760-plus branch network across 47 states, together with its 4,000-plus truck fleet and jobsite delivery capabilities, will enable The Home Depot to extend its offering to residential specialty trade pros and better-serve renovator/remodelers. 

“Our team is thrilled to join The Home Depot,” said Dan Tinker, SRS’s President and Chief Executive Officer.

“We are looking forward to combining our differentiated assets and capabilities, including our extensive branch network, experienced sales team, robust trade credit offering, and order management system, geared at serving the complex project purchase occasion, with The Home Depot’s competitive advantages. We believe this will enable us to better serve pros and continue growing in our large and highly fragmented market.”

Mr Tinker, as well as his senior leadership team, will continue to lead SRS. They will work closely with The Home Depot to deliver the best value proposition for all pro customers.

Under the terms of the merger agreement, a subsidiary of The Home Depot will acquire SRS for a total enterprise value (including net debt) of approximately $18.25 billion. The closing of the acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to be completed by the end of fiscal 2024.