The Home Depot has completed the acquisition of SRS Distribution, Inc. for a total enterprise value of approximately $18.25 billion. This acquisition is set to increase the company’s total addressable market to approximately $1 trillion, which is an increase of about $50 billion.
SRS Distribution, founded in 2008, has quickly grown to become one of the fastest-growing building products distributors in the United States. It currently operates more than 760 locations across 47 states and serves the professional roofer, landscaper, and pool contractor markets.
The Home Depot, as of the end of the first quarter of fiscal year 2024, operated a total of 2,337 retail stores in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces, and Mexico. The company employs approximately 465,000 associates.
With this acquisition, The Home Depot expects to accelerate its growth with the residential professional customer and establish itself as a leading specialty trade distributor across multiple verticals. The company believes that the addition of SRS complements its capabilities and will enable it to better serve the complex purchase occasion.
This acquisition represents an opportunity for The Home Depot to further drive value for its customers, associates, and shareholders. Following these announcements, the company's shares moved 1.3%, and are now trading at a price of $353.87. For more information, read the company's full 8-K submission here.
