From CNBC: 2024-11-15 15:00:29

Home Depot’s acquisition of SRS Distribution for $18.25 billion includes specialized businesses like Texas Pool Supply, offering pool parts and chemicals. This move reflects Home Depot’s strategy to cater to professionals in the roofing, pool, and landscaping industries. The deal has boosted Home Depot’s sales by over 6%, signaling a shift towards pro sales over DIY projects.

The acquisition expands Home Depot’s market to approximately $1 trillion, adding $50 billion to its total addressable market. SRS Distribution provides a deeper catalog of merchandise, dedicated sales force, and trade credit. The move is likened to Walmart’s acquisition of Jet.com, accelerating online business. Home Depot aims to leverage SRS’ expertise to enhance its pro strategy.

Home Depot faces challenges with slowing housing turnover affecting the pro business. Stronger retail performance is expected with hurricane-related sales boosts. Investors show optimism despite underperforming the S&P 500. The company aims to attract more DIY sales while focusing on pro growth. The synergy between Home Depot and SRS brings operational efficiencies and product variety to meet diverse customer demands.



Read more at CNBC: Why Home Depot acquired SRS Distribution