Articles - E-News

Home Depot Expands Professional Reach with SRS Distribution Acquisition

April 2024

Articles - E-News

Home Depot Expands Professional Reach with SRS Distribution Acquisition

April 2024

Home Depot aims to broaden its professional customer base engaged in larger-scale projects through its acquisition of SRS Distribution, a supplier catering to roofers and other contractors.

"Home Depot announced Thursday it is acquiring a roofing distributor in a significant $18 billion deal, signaling the retailer's commitment to attracting more business from contractors and construction firms," the company stated in a news release.

The acquisition of SRS Distribution Inc., specializing in supplies for professional roofers and contractors, is anticipated to be finalized by the end of the fiscal year in late January, Home Depot revealed. Financing for the deal will be facilitated through available cash and debt.

"SRS, an industry leader with a proven track record of profitable growth, is poised to bolster our expansion among residential professional customers, presenting future opportunities with specialty trade pros," remarked Home Depot CEO Ted Decker.

SRS Distribution, founded in 2008, has rapidly expanded its footprint to encompass 760 locations across 47 states, along with a fleet of 4,000 delivery trucks, establishing a crucial reach that Home Depot believes will enable it to attract more professional customers involved in substantial projects.

"SRS has built a robust and successful platform that will accelerate our growth with the residential professional customer while presenting future opportunities with the specialty trade pro," Decker reiterated.

SRS Distribution serves roofers, landscapers, and pool contractors, having experienced rapid growth over the past 16 years through the acquisition of local and regional distributors, which continue to operate under their own brands.

Under the agreement, SRS will function as an autonomous entity within Home Depot, focusing on expanding the retailer's professional business segment, which caters to contractors handling more complex and lucrative projects, typically sourcing supplies wholesale or through specialty distributors.

"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," stated SRS President and CEO Dan Tinker. "We set out to find the optimal strategic outcome for the business, and we strongly believe we have achieved just that."

Home Depot, boasting approximately 2,300 stores, views this acquisition as a strategic move to bolster its e-commerce sales and attract a larger pool of professional clientele while retaining its do-it-yourself customer base.

The acquisition complements other recent ventures in the professional sphere, including the $8 billion acquisition of HD Supply in 2020, as well as two additional acquisitions last year: International Designs Group, owner of Construction Resources, and Temco, an appliance delivery and installation company.

Home Depot has also disclosed plans to inaugurate four new distribution centers catering to professionals requiring supplies delivered directly to job sites.

Pending regulatory approval, Dan Tinker will oversee SRS operations and report directly to Ted Decker.

"I look forward to welcoming the entire SRS team to The Home Depot and capturing the exciting opportunity ahead," Decker expressed.

By Eric Lagatta