From CNBC: 2024-03-28 07:10:52

Home Depot is acquiring SRS Distribution in an $18.25 billion deal to target more business from contractors and home professionals. The retailer anticipates closing the deal this fiscal year, funded through cash and debt. CEO Ted Decker expects the acquisition to expand Home Depot’s addressable market by $50 billion.

SRS Distribution sells supplies to professionals in landscaping, pool, and roofing industries, with approximately 11,000 employees and 760 branches across 47 states. Home Depot’s largest acquisition is expected to enhance its pro business as sales growth slows. The retailer plans to open new stores and distribution centers, focusing on seamless shopping experiences for customers.

Amidst moderating sales, Home Depot leans into the pro business and aims to attract more professional sales with strategic acquisitions and store expansions. The retailer projects slower sales trends for the year, with total sales expected to grow by 1%. Despite the challenges, Home Depot’s stock has gained 11% this year, closing at $385.89 on Wednesday.



Read more at CNBC: Home Depot acquiring SRS Distribution for $18.25 billion to grow pro sales