Home:  Global Wood p01.gif (127 bytes) Industry News & Markets

[Mar 29, 2024]

 Home depot

 Home improvement retailer Home Depot is purchasing 760-unit roofing distributor SRS Distribution for $18.25 billion

The Home Depot has entered into a definitive agreement to acquire SRS Distribution Inc., McKinney, Tx., a leading residential specialty trade distribution company across several verticals serving the professional roofer, landscaper and pool contractcustomer while presenting future opportunities with the specialty trade pro.¡±

erspective due to amortization expense, but accretive from a cash EPS perspective in the first year, post-closing, excluding synergies.The Home Depot has agreed to acquire SRS Distribution Inc., McKinney, Tx., for $18.25 billion

Under the terms of the deal, SRS Distribution will operate as an independent business unit within The Home Depot, focused on accelerating growth in the pro market.

Culpeper Leaderboard
Over the past 16 years, the SRS family has become one of the fastest-growing building products distributors in the U.S. This proposed transaction will bring together the impressive talent, technology, and capabilities of SRS with The Home Depot¡¯s trusted name and robust platform, expanding SRS¡¯ reach into numerous new product categories and customers.

The proposed acquisition will clear a pathway for accelerated growth with the residential and commercial professional customer by expanding Home Depot¡¯s pro capabilities, combining online, retail, and wholesale. 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.

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

¡°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 Tinker. ¡°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 pro customers, and our team.¡±

¡°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 Ted Decker, chair, president and CEO of The Home Depot. ¡°SRS¡¯ branch network, coupled with The Home Depot¡¯s 2,000+ U.S. stores and distribution centers and comprehensive product offering provides the residential and commercial Pro customer with more fulfillment and service options than ever before. I look forward to welcoming Dan and the entire SRS team to The Home Depot and capturing the exciting opportunity ahead.¡±

The transaction is expected to close by the end of fiscal 2024 and is subject to regulatory approvals and other customary closing conditions.

Founded in 2008, SRS currently operates under a family of distinct local brands encompassing more than 760 locations across 47 states. Its 46 brands include Acorn Roofing Supply, Advanced Building Products, American Roofing Supply, BL, Kohl Building Products, Marsh Building Products, Metro Roofing & Metal Supply, Midwest Roofing Supply, River City Wholesale, Suncoast Roofers Supply, Wimsatt Building Materials, Aloha Roofing Supply, American Roofing Supply, CB Wholesale, De Bel, JB Wholesale Roofing & Building Supplies, Roofers Supply, Roofline Supply & Delivery, SRS, Stoneway Roofing Supply, and Washoe Building Supply.

With the purchase, Home Depot estimates its total addressable market is approximately $1 trillion, an increase of approximately $50 billion.

Source: building-products.com