BY Fraser Tennant
In what constitutes the US home improvement chain's largest acquisition, The Home Depot is to acquire building materials supplier SRS Distribution (SRS) in a deal valued at approximately $18.25bn.
The transaction brings together the impressive talent, technology and capabilities of SRS with The Home Depot’s trusted name and robust platform of The Home Depot, expanding SRS’ reach into numerous new product categories and customers.
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.
“We are proud to be combining with The Home Depot to continue our growth journey with the additional resources and capabilities they will put behind us,” said Dan Tinker, president and chief executive of SRS. “We set out to find the optimal strategic outcome for the business, and we strongly believe we have achieved just that. With this combination, the future has never been brighter for our supplier partners, our customers and our team.”
Founded in 2008 and headquartered in McKinney, Texas, SRS has grown to become one of the fastest-growing building products distributors in the US. The company operates under a family of distinct local brands encompassing more than 760 locations across 47 states.
Upon the new structure, Mr Tinker and his senior management team will continue to lead SRS operations, reporting to Ted Decker, chair, president and chief executive of The Home Depot.
“SRS’ 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,” said Mr Decker. “SRS’ branch network, coupled with The Home Depot’s 2000-plus US stores and distribution centres and comprehensive product offering provides the residential and commercial Pro customer with more fulfillment and service options than ever before.”
The transaction is expected to close by the end of 2024 and is subject to regulatory approvals and other customary closing conditions.
Mr Decker concluded: “I look forward to welcoming the SRS team to The Home Depot and in capturing the exciting opportunity ahead.”
News: Home Depot bulks up Pro-business with $18.25 bln deal for building products supplier SRS