World

Home Depot announced that it’s acquiring SRS Distribution — which sells supplies to builders, roofers, landscapers and pool contractors — in a mammoth $18.25 billion deal that includes assumed debt.

Home Depot said in a press release issued Thursday that it expects the deal to close in its 2024 fiscal year, which ends late January 2025.

The move is the home-improvement retailer’s latest and biggest deal ever to win more business from major contractors and construction firms, CNBC earlier reported.

The Atlanta-based chain — which boasts 2,000-plus locations across the US — also revealed last week that it will open four new distribution centers in Detroit, Los Angeles, San Antonio and Toronto within the first half of the year in order to drive sales from home professionals who handle bigger projects, such as extensive renovations.

Each facility averages approximately 500,000 square feet — roughly five times the size of the average Home Depot store, according to CNBC.

Home Depot chief Ted Decker described its acquisition of SRS to CNBC as a complementary accelerator to its efforts to attract more contractors, roofers and other home professionals.

He added the deal — the largest of its kind in Home Depot’s 46-year history — increases the company’s total addressable market by $50 billion, CNBC reported.

“Growing our share of wallet with the pro will fuel Home Depots next great growth chapter. SRS will help us better sell the whole project and capture a new customer we havent traditionally served,” a Home Depot spokesperson told The Post.

Texas-based SRS is owned by private-equity firms, Leonard Green & Partners and Berkshire Partners, which operate 760 branches across 47 states and a fleet of some 4,000 delivery trucks.

SRS also boasts a workforce of approximately 11,000 employees, though it wasn’t immediately clear if any layoffs will take place as a result of the acquisition.

Representatives for SRS did not immediately respond to The Post’s request for comment.

Separately on Thursday, SRS said in a news release on its website that its “senior leadership team will remain with the company to guide its ambitious growth plans.”

Under its new structure with Home Depot — which employs about 465,000 workers — SRS president and CEO Dan Tinker will report to Home Depot’s boss, Ted Decker.

Subscribe to our daily Business Report newsletter!

Please provide a valid email address.

By clicking above you agree to the Terms of Use and Privacy Policy.

Never miss a story.

Decker told CNBC that hes confident the deal will get approved by federal regulators despite recent scrutiny around major mergers and acquisitions.

With the separate customer base, different channels, different purchase occasions, we feel good that this will go through, he said.

Even so, the acquisition is coming at a time when Home Depot is expecting slower sales trends.

Last month, the home-improvement giant said after reporting earnings that beat Wall Street’s expectations that it anticipates total sales for the year to grow only about 1%, despite fiscal 2024 including an additional week.

Though Home Depot’s revenue for the three-month period ended Jan. 28 rang in at $34.79 billion, topping the $34.64 billion expected, the 1% total sales outlook fell short of the 1.6% increase analysts predicted, according to CNBC.

Articles You May Like

Salman Rushdie says knife attacker came at him like a ‘missile’
England’s most successful spin bowler in Test history has died
How relentless food inflation is becoming Biden's major hot potato
World leaders call for Israeli restraint – but many in Jerusalem are not convinced
Pet Survival – 3 Levels of Pet Prepping