2024-03-29 07:27:27 ET
Summary
- The Home Depot has announced the acquisition of SRS Distribution, a residential specialty trade distribution company, for $18.25 billion.
- The acquisition will provide The Home Depot access to a new market worth around $50 billion and complement its existing capabilities.
- The deal will increase The Home Depot's leverage and temporarily suspend share buybacks.
- The stock is also looking pricey, leading to a 'hold' downgrade.
March 28th ended up being a really interesting day for shareholders of home improvement retailer The Home Depot ( HD ). After the market closed, the management team at the business announced a massive acquisition. According to the press release issued regarding the deal, the company has agreed to acquire SRS Distribution, a privately owned business that serves as a leading residential specialty trade distribution company that has operations serving professional roofers, landscapers, and pool contractors. Unfortunately, The Home Depot's management team did not reveal how much in synergies might be captured from this transaction. But they did say that the move will bring with it access to an entirely new market that could be worth up to around $50 billion....
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For further details see:
The Home Depot's Big Purchase: A Big Opportunity With A Big Price Tag