Leonard Green & Partners and Berkshire Partners Portfolio Company, SRS Distribution, Enters into a Definitive Agreement to be Acquired by The Home Depot for $18.25 Billion
March 28 2024 - 8:31AM
Business Wire
The portfolio company of Leonard Green & Partners and
Berkshire Partners, SRS Distribution (“SRS”), has entered into a
definitive agreement with The Home Depot to be acquired for $18.25
billion. The details of this sale were made public in press
releases issued this morning by The Home Depot and SRS. SRS is a
leading distributor of residential and commercial building products
in the United States, with more than 760 branches across 47 states.
The Home Depot is the world’s largest home improvement
retailer.
“We feel privileged to have had the opportunity to invest
in and partner with SRS and its more than 11,000 employee
stakeholders,” said Jonathan Seiffer, Senior Partner, Leonard Green
& Partners. “We extend a heartfelt thank you and
congratulations to the entire team at SRS on their remarkable
history of growth. SRS’s legacy of success and achievement would
not have been possible without the phenomenal leadership of CEO Dan
Tinker and his team and Chairman Ron Ross, as well as the unique
culture and operating model that they have forged at SRS.”
“Since our investment in SRS 11 years ago, we’ve enjoyed a
highly collaborative and effective partnership with CEO Dan Tinker
and the entire SRS management team and we’re thrilled to reach such
a successful milestone in this announced sale to The Home Depot,”
said Josh Lutzker, Managing Director, Berkshire Partners. “SRS
started as a small, regional player and has grown into a national
platform serving multiple end markets. We’re all proud to be
associated with such a great team and growth story.”
“We’re thrilled to be combining with The Home Depot, which is a
direct result of the unwavering commitment and dedication from the
entire team at SRS,” said Dan Tinker, President, and CEO of SRS
Distribution. “I’m so proud of our company, our strong culture, and
our impressive growth story. Throughout this journey, we’ve
accomplished so much for our customers, our suppliers, our
community, and our employees. I’m also grateful for the support and
guidance we received from our private equity partners – Leonard
Green & Partners and Berkshire Partners. Both firms take a
collaborative and long-term approach to engagement and value
creation, which has contributed significantly to the success of our
business.”
Berkshire Partners invested in SRS in 2013 when the company
generated approximately $650 million of revenue with fewer than 100
branches, distributing primarily residential roofing supplies.
Today, SRS operates more than 760 branches in almost every state
producing more than $10 billion in annual revenue.
In 2018, Leonard Green & Partners became majority owner of
SRS, with Berkshire Partners remaining a significant shareholder.
Over the duration of the partnership, both private equity firms
helped evolve and grow the best-in-class leadership team at SRS.
Through its entry into landscaping distribution in 2019 and pool
distribution in 2021, SRS also significantly expanded the breadth
of industries it served. SRS also has a remarkable commitment to
employee ownership, which drives a thriving culture and compelling
results. The company’s widespread employee ownership and equity
incentive programs have helped to reinforce high levels of
engagement and strong company performance.
About LGP
LGP is a leading private equity investment firm founded in 1989
and based in Los Angeles with over $75 billion of assets under
management. The firm partners with experienced management teams and
often with founders to invest in market-leading companies. Since
inception, LGP has invested in over 120 companies in the form of
traditional buyouts, going-private transactions, recapitalizations,
growth equity, and selective public equity and debt positions. The
firm primarily focuses on companies providing services, including
consumer, healthcare, and business services, as well as retail,
distribution, and industrials. For more information, please visit
www.leonardgreen.com.
About Berkshire Partners
Berkshire Partners is a 100% employee-owned, multi-sector
specialist investor in private and public equity. The firm’s
private equity team invests in well-positioned, growing companies
across services & industrials, technology & communications,
consumer, and healthcare. Since inception, Berkshire Partners has
made more than 150 private equity investments and has a strong
history of collaborating with management teams to grow the
companies in which it invests. The firm's public equity group,
Stockbridge, founded in 2007, manages a concentrated portfolio
seeking attractive long-term investments. The firm’s Stockbridge
and Private Equity teams frequently collaborate and leverage their
collective industry expertise across sectors. For additional
information, visit www.berkshirepartners.com.
About SRS Distribution
Founded in 2008 and headquartered in McKinney, Texas, SRS
Distribution has 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 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.
Quotes representing endorsements are provided by an executive of
a portfolio company owned by funds advised by Berkshire Partners.
The executive was not compensated for providing these endorsements.
However, as a result of the ownership structure of Berkshire
Partners Private Equity’s portfolio companies, a conflict of
interest exists because the executive has an incentive to make
positive statements about Berkshire Partners and their experiences
with Berkshire Partners to maintain the goodwill with Berkshire
Partners.
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version on businesswire.com: https://www.businesswire.com/news/home/20240328765775/en/
Leonard Green & Partners (LGP)
communications@leonardgreen.com
Berkshire Partners Greg Winter 617-316-6260
gwinter@berkshirepartners.com
SRS Distribution PR@srsdistribution.com