Home Depot is set to acquire building materials supplier SRS Distribution in an $18.25 billion deal, aiming to expand its professional customer base amid slower consumer demand for home improvement projects. The acquisition will provide Home Depot with access to SRS' warehouse network and delivery fleet, allowing the company to better serve professional builders and contractors. This move reflects Home Depot's focus on driving sales and profitability by enhancing the customer experience, particularly for larger contractors who have faced logistical challenges with the company in the past.
Home Depot's largest acquisition ever is an $18.25 billion deal to buy SRS Distribution, a materials provider for professionals, as it aims to step more aggressively into the fast-growing professional builder and contractor business. The move is a bet on the severe shortage of new homes in the housing market, which has driven prices sky high, and the overall decline in mortgage rates has encouraged homebuyers. With this acquisition, Home Depot believes its total addressable market will increase by approximately $50 billion, and the deal is expected to close by the end of fiscal 2024.
Home Depot is set to acquire building supply distributor SRS Distribution in an $18.25 billion deal, marking its largest acquisition to date. The acquisition is expected to close in Home Depot's 2024 fiscal year and is aimed at expanding its reach to major contractors and construction firms. The deal will also see the opening of four new distribution centers to cater to home professionals handling larger projects. Despite expecting slower sales trends, Home Depot remains confident in the deal's approval by federal regulators and anticipates continued growth in the coming years.
Home Depot is acquiring SRS Distribution for $18 billion in a move to attract more professional customers, particularly contractors and construction companies. SRS, a distributor of supplies for professional roofers and contractors, is expected to operate independently within Home Depot and will help the retailer expand its pro business. The acquisition is part of Home Depot's strategy to bolster its e-commerce sales, open new distribution centers, and strengthen its position in the professional customer market.
Home Depot is set to acquire SRS Distribution, a materials provider for professional contractors, in an $18.25 billion deal, marking its largest acquisition to date. This move allows Home Depot to expand its presence in the fast-growing professional builder and contractor market amid soaring housing prices and a shortage of new homes. The deal is expected to increase Home Depot's total addressable market to approximately $1 trillion, with SRS's robust platform and extensive network positioning the company for further growth in the highly fragmented market.
Home Depot is acquiring SRS Distribution for $18.25 billion in a move to expand its pro sales business, aiming to win more business from contractors and home professionals. The deal, expected to close this fiscal year, will be financed through cash and debt. This acquisition, the largest in Home Depot's history, follows previous deals in the pro space and is part of the company's strategy to attract more pros. Home Depot has been focusing on opening new stores, attracting more pro sales, and making the shopping experience seamless to drive growth, as it anticipates slower sales trends to continue.
