Skip to main content

Home Depot to acquire SRS Distribution

Massive pro-move brings Texas-based building products distributor to the giant retailer.
3/28/2024
SRS Distribution Truck 2023
SRS Distribution opened 23 greenfield branches in 2023.

The Home Depot announced this morning that it has entered into a definitive agreement to acquire SRS Distribution 

According to McKinney, Texas-based SRS Distribution, Home Depot is paying $18.25 billion for the deal. Under the terms of the agreement, SRS Distribution will operate as an independent business focused on growing Home Depot’s presence in the pro market.

Prior to the acquisition, SRS Distribution was a portfolio company of Leonard Green & Partners, L.P. and Berkshire Partners LLC. SRS has also been one of the fastest-growing companies in the building products distribution market.

Founded in 2008, SRS Distribution currently operates under a family of distinct local brands encompassing more than 760 locations across 47 states.  The company's primary focus is the distribution of roofing materials in addition to serving landscapers and pool contractors.

The combined platform will open new opportunities for existing suppliers and partners by providing access to SRS’ expert workforce focused on specialty verticals, as well as The Home Depot’s cross-project expertise, product mix, network, and digital assets, the Texas distributor said.

The world’s largest home improvement retailer said SRS complements its capabilities and will enable Home Depot to “better serve complex project purchase occasions with the renovator/remodeler, while also establishing itself as a leading specialty trade distributor across multiple verticals.”

The Home Depot also noted that its "total addressable market" is approximately $1 trillion, an increase of approximately $50 billion.

Home Depot logo
Home Depot said the addition of SRS Distribution will accelerate its growth among pro customers.

“SRS is an industry leader with a proven track record of profitable growth across verticals,” said Ted Decker, Home Depot chairman, president, and CEO. “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.”

Under terms of the agreement, SRS senior leadership team will remain with the company to guide its growth plans. Dan Tinker, president and CEO of SRS, will continue to lead SRS operations under the new structure, reporting to Decker.

“We're proud to be combining with The Home Depot to continue our growth journey with the additional resources and capabilities they will put behind us,” Tinker said. “We have achieved just that. With this combination, the future has never been brighter for our supplier partners, our pro customers, and our team.”

SRS Distribution opened 22 greenfield locations in 2023 and 20 greenfield branches in the year prior.

Last year also included the acquisitions of Marsh Building ProductsWashoe Building SupplySunniland Corporation, and Rock Materials.

The Home Depot noted that SRS Distribution brings a sales force of more than 2,500 associates along with a fleet of more than 4,000 delivery trucks. 

Jefferies LLC is acting as lead financial advisor, and Goldman Sachs is also acting as financial advisor to SRS on this transaction.

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, The Home Depot said. The transaction is expected to be funded through cash on hand and debt.

“SRS's branch network, coupled with The Home Depot's 2,000+ U.S. 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,” Decker said. “I look forward to welcoming the entire SRS team to The Home Depot and capturing the exciting opportunity ahead."

Advertisement - article continues below
Advertisement
X
This ad will auto-close in 10 seconds