Home Depot announced Thursday it is buying a roofing distributor in a massive $18 billion deal that signals the home-improvement retailer’s intent to attract more business from contractors and construction companies.
The acquisition of SRS Distribution Inc., which sells supplies for professional roofers and other contractors, is expected to close by the end of the fiscal year in late January, Home Depot said in a news release. The Atlanta-based company said it will finance the deal through cash on hand and debt.
SRS, which is owned by private-equity firms, is “an industry leader with a proven track record of profitable growth,” Home Depot CEO Ted Decker said in a statement. Founded in 2008, the distributor based in McKinney, Texas has expanded to 760 locations in 47 states with a fleet of 4,000 delivery trucks – a critical reach that Decker believes will allow Home Depot to gain more professional customers who work on larger projects.
“SRS has built a robust and successful platform that will accelerate our growth with the residential professional customer while presenting future opportunities with the specialty trade pro,” Decker said in the statement.
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What is SRS Distribution?
SRS Distribution, which supplies roofers, landscapers and pool contractors, has rapidly grown in the last 16 years by buying local and regional distributors.
Those acquisitions continue to…
