Home Depot Acquires SRS Distribution

March 28, 2014 — SRS Distribution Inc. has announced its agreement to be acquired by The Home Depot for $18.250 billion, marking a significant development in the building products distribution sector. This acquisition is poised to reshape the landscape of the industry, with SRS Distribution set to operate as an autonomous business unit under The Home Depot’s umbrella, with a strategic focus on accelerating growth within the professional market segment.

SRS Distribution, over its 16-year trajectory, has emerged as one of the fastest-growing distributors of building products in the United States. The proposed acquisition is expected to harness the collective strengths of both entities, merging SRS’s impressive talent pool, technology, and capabilities with the renowned brand and robust platform of The Home Depot. This amalgamation is forecasted to unlock opportunities for SRS to expand into new product categories and reach untapped customer demographics.

A central objective of the acquisition is to propel growth within the residential and commercial professional customer base by enhancing The Home Depot’s Pro capabilities. By integrating online, retail, and wholesale channels, the combined entity aims to offer a comprehensive suite of services to professional customers, thereby augmenting customer satisfaction and loyalty.

Furthermore, the partnership is anticipated to create synergies that benefit existing suppliers and partners of both SRS and The Home Depot. Through access to SRS’s specialized workforce and The Home Depot’s expansive network, suppliers can anticipate broader reach and enhanced collaboration opportunities, while customers stand to benefit from an enriched product mix and service offerings.

Key leadership at SRS, including President and CEO Dan Tinker, will continue to steer the company’s operations within The Home Depot structure. This continuity is expected to ensure a smooth transition and enable the realization of ambitious growth plans.

Commenting on the transaction, Dan Tinker expressed confidence in the strategic alignment between the two companies and highlighted the promising prospects for all stakeholders involved. Similarly, Ted Decker, Chair, President, and CEO of The Home Depot, emphasized the complementary nature of the acquisition and the value it brings to customers, suppliers, and employees.

SRS Distribution’s current investors, Berkshire Partners LLC and Leonard Green & Partners L.P., view the acquisition as a logical progression in SRS’s evolution, one that promises mutual benefits for all parties involved. The transaction, subject to regulatory approvals and customary closing conditions, is anticipated to be finalized by the end of fiscal 2024.

The acquisition of SRS Distribution by The Home Depot represents a strategic move aimed at fortifying both companies’ positions in the building products distribution sector, driving growth, and creating value for stakeholders across the board.