2024-03-28 06:35:55 ET
Home Depot Inc (NYSE: HD) just announced plans of buying SRS Distribution for $18.25 billion. Its shares are roughly flat in premarket on Thursday.
How will finance SRS acquisition?
The announced acquisition reiterates commitment to winning more business from home professionals including contractors and roofers.
Home Depot will finance the SRS Distribution transaction with cash and debt. Ted Decker – its chief executive said in a press release today:
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.
The news arrives more than a month after Home Depot reported better-than-expected financial results for its fourth quarter. is currently up roughly 13% versus the start of 2024.
Watch here: https://www.youtube.com/embed/51PzWPthIOw?feature=oembedSRS will help grow Home Depot’s TAM
Home Depot expects to complete the acquisition by the end of fiscal 2024 provided that it satisfies customary closing conditions including regulatory approvals.
SRS Distribution is the largest deal in the history of and is expected to help grow its total addressable market (TAM) by a whopping $50 billion, as per CEO Decker.
Last month, the home improvement retail company said sales slowdown will likely continue in the coming months and revealed plans of setting up four distribution facilities that would cater to pros. Wall Street currently has a consensus “overweight” rating on .
SRS – a roofing and building supplies distributor based out of McKinney, Texas has a footprint of 760 locations in total across 47 states.
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