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 Products, Washoe Building Supply, Sunniland 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."