The Home Depot, Atlanta, Ga., home improvement retailer, has agreed to acquire SRS Distribution Inc. (SRS), McKinney, Texas, a distributor serving professional roofers, landscapers and pool contractors.
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SRS will add a 2,500-plus professional sales force and more than 760 branches across 47 states, along with a 4,000-plus truck fleet and jobsite delivery capabilities.
Under the terms of the merger agreement, a subsidiary of The Home Depot will acquire SRS for a total enterprise value (including net debt) of approximately $18.25 billion.
According to a press release, SRS will enable The Home Depot to better serve complex project purchases with the renovator/remodeler, while also “establishing The Home Depot as a leading specialty trade distributor across multiple verticals.”
“Our team is thrilled to join The Home Depot,” said Dan Tinker, SRS’s president and CEO. “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. We believe this will enable us to better serve pros and continue growing in our large and highly fragmented market.”
Tinker, as well as his senior leadership team, will continue to lead SRS.
The acquisition will allow The Home Depot to expand offerings to Pro Customers, increasing its total addressable market to $1 trillion, an increase of $50 billion, according to The Home Depot estimates.
“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. I look forward to welcoming the entire SRS team to The Home Depot and capturing the exciting opportunity ahead,” said Ted Decker, CEO of The Home Depot.
