Home Depot on Thursday said it is acquiring SRS Distribution in an $18.25 billion deal, the latest and largest sign of its ambitions to drive sales by winning more business from contractors, roofers and other home professionals.
The home improvement retailer expects the acquisition to close this fiscal year, which ends in late January. It said it will finance the deal through cash on hand and debt.
Home Depot already draws half of its business from pros, while the other half comes from do-it-yourself customers. With the deal, the Atlanta-based company is making yet another push to gain the customers who tackle complex and lucrative construction jobs, particularly as homeowners pull back on Do-It-Yourself projects. That was one of the priorities that Home Depot leaders laid out for this year. It’s also why the company has been opening a growing network of distribution centers that can stock large quantities of items that pros need, such as lumber or shingles, and deliver them directly to a job site.
The acquisition is the largest in Home Depot’s history.
In an interview with CNBC, CEO Ted Decker described the deal as “a complementary accelerator” to its efforts to attract more pros. He said the deal increases Home Depot’s total addressable market by $50 billion.
SRS Distribution sells supplies to professionals in the landscaping, pool and roofing businesses. The McKinney, Texas-based company has approximately 11,000 employees and 760 branches across 47 states. It also has a fleet of 4,000 delivery trucks and a dedicated salesforce that caters to the home pros, Decker said.
Click this link for the original source of this article.
Author: Faith N
This content is courtesy of, and owned and copyrighted by, https://www.offthepress.com and its author. This content is made available by use of the public RSS feed offered by the host site and is used for educational purposes only. If you are the author or represent the host site and would like this content removed now and in the future, please contact USSANews.com using the email address in the Contact page found in the website menu.