US retailer Home Depot buying distribution firm SRS for $18.25B

By Ovunc Kutlu

ISTANBUL (AA) - The Home Depot announced Thursday it will acquire American building products distributor SRS Distribution for approximately $18.25 billion.

The world's largest home improvement retailer said its growth will accelerate with the agreement, and added it estimates its total addressable market at around $1 trillion.

"SRS's branch network, coupled with The Home Depot's 2,000+ U.S. stores and distribution centers, comprehensive product offering, and extensive pro brands, provides the residential pro customer with more fulfillment and service options than ever before," Ted Decker, chair, president, and CEO of The Home Depot said in a statement.

SRS has more than 2,500 professional sales force and 760-branch network across 47 states in the US, in addition to over 4,000 truck fleet and jobsite delivery capabilities, according to the statement.

"We are looking forward to combining our differentiated assets and capabilities, including our extensive branch network, experienced sales team, robust trade credit offering, and order management system, geared at serving the complex project purchase occasion, with The Home Depot's competitive advantages," said Dan Tinker, SRS's president and CEO.

The deal is expected to be completed by the end of fiscal 2024, and the transaction is expected to be funded through cash on hand and debt.

The Home Depot operates a total of 2,335 retail stores in all 50 states in the US, Puerto Rico, the US Virgin Islands, Guam, 10 Canadian provinces and Mexico, employing approximately 465,000 associates.