The Home Depot is acquiring building products distributor SRS Distribution for $18.25 billion in a bid to accelerate the growth of its pro offerings. The deal, which is expected to close by the end of the retailer’s fiscal 2024 in late January 2025, is subject to customer closing conditions and will be funded through a combination of cash and debt.
SRS serves several verticals of residential and commercial professionals, including roofers, landscapers and pool contractors. The acquisition of SRS follows Home Depot’s November 2023 acquisition of Construction Resources, a distributor of design-oriented surfaces, appliances and architectural specialty products with showrooms across the Southeast and East Coast.
SRS operates a 2,500+ professional sales force and 760 branches across 47 states, as well as a 4,000+ truck fleet and jobsite delivery capabilities. Following the acquisition, SRS Distribution will operate as an independent business unit within The Home Depot, enabling the retailer to better serve complex project purchase occasions with renovators and remodelers, while also “establishing The Home Depot as a leading specialty trade distributor across multiple verticals,” according to a statement.
“SRS is an industry leader with a proven track record of profitable growth across verticals,” said Ted Decker, Chair, President and CEO of The Home Depot in a statement. “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+ 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.”
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“Our team is thrilled to join The Home Depot,” added Dan Tinker, President and CEO of SRS, who will remain with the company post-acquisition, in a statement. “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.”
The Home Depot has been hyper-focused on the pro market as a growth lever for several years now. In October 2022 the retailer established a marketplace designed to connect skilled tradespeople with hiring trade professionals; in January 2023 it added three new tiers to its Pro Xtra loyalty program, which originally launched in 2012; and earlier this month the company announced plans to open four new distribution centers designed specifically for the needs of its professional customers.
