The Home Depot, the world’s largest home improvement retailer, recently announced it has entered into a definitive agreement to acquire NRCA member SRS Distribution Inc., McKinney, Texas, a leading residential specialty trade distribution company that serves roofing contractors, landscapers and pool contractors, according to PR Newswire.
SRS Distribution’s 2,500-plus professional sales force and 760-plus branch network across 47 states reportedly will help The Home Depot extend its offerings to residential specialty trade professionals while better serving renovators and remodelers. With the acquisition, The Home Depot now believes its total addressable market is about $1 trillion—an increase of about $50 billion.
“Our team is thrilled to join The Home Depot,” said Dan Tinker, SRS Distribution’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 and his senior leadership team will continue to lead SRS Distribution.
Under the terms of the merger agreement, a subsidiary of The Home Depot will acquire SRS Distribution for a total enterprise value (including net debt) of about $18.25 billion. The closing of the acquisition is expected to be completed by the end of fiscal year 2024.
