Home Depot is set to acquire SRS Distribution, a building products supplier, for $18.25 billion, aiming to enhance its services for professional customers amidst a shift in consumer behavior. This move comes as more do-it-yourselfers delay major home improvement projects due to inflation. SRS, known for serving professional contractors in roofing, landscaping, and pool industries, will continue under its current leadership. Home Depot plans to finance the acquisition through existing funds and debt, anticipating closure by the end of FY 2024. With this purchase, Home Depot expands its addressable market by $50 billion, reaching approximately $1 trillion.
Emphasizing the significance of professional customers, who constitute half of its sales, Home Depot CEO Ted Decker highlights SRS’s established position and growth trajectory. Founded in 2008, SRS boasts a vast network across the United States, with over 760 branches and a strong sales force. The synergy between SRS’s assets and Home Depot’s retail infrastructure is poised to enhance service options for residential pro customers.
Home Depot’s strategy includes opening new distribution centers in strategic locations to better serve pro customers, stocking essential items like lumber and roofing materials. This strategic acquisition and expansion align with Home Depot’s commitment to catering to professional clientele and consolidating its position in the competitive home improvement market.
