SRS Distribution Announces Next Phase of Growth by Combining with The Home Depot to Better Serve Professional Customers
March 28 2024 - 8:31AM
Business Wire
SRS Distribution Inc. (“SRS”) announced today that it has
entered into a definitive agreement with The Home Depot to be
acquired for $18.250 billion. Under the terms of the agreement, SRS
Distribution will operate as an independent business unit within
The Home Depot, focused on accelerating growth in the Pro
market.
Over the past 16 years, the SRS family has become one of the
fastest-growing building products distributors in the United
States. This proposed transaction will bring together the
impressive talent, technology, and capabilities of SRS with The
Home Depot’s trusted name and robust platform, expanding SRS’ reach
into numerous new product categories and customers.
The proposed acquisition will clear a pathway for accelerated
growth with the residential and commercial professional customer by
expanding The Home Depot’s Pro capabilities, combining online,
retail, and wholesale. The combined platform will open new
opportunities for existing suppliers and partners by providing
access to SRS’ expert workforce focused on specialty verticals, as
well as The Home Depot’s cross-project expertise, product mix,
network, and digital assets.
Under the agreement, the SRS senior leadership team will remain
with the company to guide its ambitious growth plans. Dan Tinker,
President and CEO of SRS, will continue to lead SRS operations
under this new structure, reporting to The Home Depot CEO Ted
Decker.
“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,” said Dan Tinker, President and CEO of
SRS. “We set out to find the optimal strategic outcome for the
business, and we strongly believe we have achieved just that. With
this combination, the future has never been brighter for our
supplier partners, our Pro customers, and our team.”
“SRS' ability to build leadership positions in each of its trade
verticals while generating significant revenue growth is a
testament to its strong vision, leadership, culture, and
execution,” said Ted Decker, Chair, President, and CEO of The Home
Depot. “SRS' branch network, coupled with The Home Depot’s 2,000+
U.S. stores and distribution centers and comprehensive product
offering provides the residential and commercial Pro customer with
more fulfillment and service options than ever before. I look
forward to welcoming Dan and the entire SRS team to The Home Depot
and capturing the exciting opportunity ahead.”
SRS Distribution currently has two private equity investors:
Berkshire Partners LLC. (since 2013) and Leonard Green &
Partners L.P. (since 2018). “Over the past 16 years, SRS
Distribution has successfully grown its business while delivering
tremendous shareholder value to its investors and, more uniquely,
to its employees,” said Jon Seiffer, Senior Partner at Leonard
Green. “This next chapter with The Home Depot is a logical step in
SRS' evolution and will mutually benefit both companies’ growth
prospects for the benefit of all employees, customers, and
suppliers,” said Josh Lutzker, Managing Director at Berkshire
Partners.
The transaction is expected to close by the end of fiscal 2024
and is subject to regulatory approvals and other customary closing
conditions. Jefferies LLC. is acting as lead financial advisor, and
Goldman Sachs is also acting as financial advisor to SRS on this
transaction.
About SRS Distribution
Founded in 2008 and headquartered in McKinney, Texas, SRS
Distribution has grown to become one of the fastest-growing
building products distributors in the United States. Since the
Company’s inception, it has established a differentiated growth
strategy and entrepreneurial culture that is focused on serving
customers, partnering with suppliers, and attracting the industry’s
best talent. SRS Distribution currently operates under a family of
distinct local brands encompassing more than 760 locations across
47 states. SRS Distribution is a portfolio company of Leonard Green
& Partners, L.P. and Berkshire Partners LLC. For more
information, visit www.srsdistribution.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240328057849/en/
Missy Morgan Vice President of Marketing
PR@srsdistribution.com