Home Depot finalizes $18 billion SRS Distribution deal
The Home Depot has completed its largest acquisition ever.
The home improvement giant has completed its purchase of SRS Distribution, Inc. (SRS) for a total value of approximately $18.25 billion. SRS is a leading residential specialty trade distribution company across several verticals serving professional roofer, landscaper and pool contractor fields.
The Home Depot says the acquisition will increase the company's total addressable market to approximately $1 trillion, an increase of approximately $50 billion, adding that the combination of the two businesses will “accelerate The Home Depot's growth with the residential professional customer.”
Founded in 2008 and headquartered in McKinney, Texas, SRS operates under a family of distinct local brands encompassing more than 760 locations across 47 states. It has a fleet of 4,000 delivery trucks, jobsite delivery capabilities and a dedicated 2,500-plus salesforce.
"SRS is an excellent fit for The Home Depot – it's both complementary and additive to our growth," said Ted Decker, chair, president and CEO of The Home Depot. "Their ability to quickly build leadership positions in each of their specialty trade verticals is a testament to the team's strong vision, leadership, culture and execution. SRS's outstanding customer service, capabilities, and expertise will help us drive value for our customers, associates and shareholders, and we're excited to welcome the SRS team to The Home Depot."
The completed deal follows Home Depot’s continued expansion efforts. In March, the retailer said it would open four new distribution centers geared toward serving pro customers during the first half of 2024.
The company also recently acquired Construction Resources, a distributor of design-oriented surfaces, appliances and architectural specialty products for pro contractors. Pro customers currently account for about half of Home Depot’s sales.
Headquartered in Atlanta, The Home Depot operates more than 2,330 retail stores in the United States, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico.