Home Depot Acquires McKinney-Based SRS Distribution for Over $18 Billion

SRS will operate as an independent business within The Home Depot, powered by its sales force of 2,500-plus, its 4,000-plus truck fleet, and its 760-plus branch network across 47 states.

McKinney-based SRS Distribution—one of the nation’s leading distributors of roofing materials and building products—has agreed to be acquired by The Home Depot for $18.25 billion. SRS will operate as an independent business within The Home Depot, as the big box retailer focuses on accelerating growth in the Pro market.

That may be an eye-popping number, but SRS has some big numbers of its own: The North Texas company has a sales force of 2,500-plus and a 760-plus branch network across 47 states. It also boasts a 4,000-plus truck fleet to help provide jobsite delivery capabilities.

“We’re proud to be combining with The Home Depot to continue our growth journey with the additional resources and capabilities they will put behind us,” SRS President and CEO Dan Tinker said in a statement. “We set out to find the optimal strategic outcome for the business, and we strongly believe we have achieved just that. With this combination, the future has never been brighter for our supplier partners, our Pro customers, and our team.”

In the past 16 years, the SRS has become one of the fastest-growing building products distributors in the U.S., the company said. SRS said its acquisition will bring together the talent, technology, and capabilities of SRS with The Home Depot’s trusted name and robust platform, expanding SRS’ reach into numerous new product categories and customers.

The acquisition aims to “clear a pathway for accelerated growth with the residential and commercial professional customer” by expanding The Home Depot’s Pro capabilities, combining online, retail, and wholesale.

The combined platform will open new opportunities for existing suppliers and partners by providing access to SRS’ expert workforce focused on specialty verticals, as well as The Home Depot’s cross-project expertise, product mix, network, and digital assets, SRS said.

‘A logical step in SRS’ evolution’

The SRS senior leadership team will remain with the company to guide its ambitious growth plans. Tinker will continue to lead SRS operations under this new structure, reporting to The Home Depot CEO Ted Decker.

“SRS’ ability to build leadership positions in each of its trade verticals while generating significant revenue growth is a testament to its strong vision, leadership, culture, and execution,” Decker said. “SRS’ branch network, coupled with The Home Depot’s 2,000+ U.S. stores and distribution centers and comprehensive product offering provides the residential and commercial Pro customer with more fulfillment and service options than ever before. I look forward to welcoming Dan and the entire SRS team to The Home Depot and capturing the exciting opportunity ahead.”

SRS Distribution ‘s two private equity investors are Berkshire Partners LLC. (since 2013) and Leonard Green & Partners LP (since 2018).

Both investors applauded the acquisition.

“Over the past 16 years, SRS Distribution has successfully grown its business while delivering tremendous shareholder value to its investors and, more uniquely, to its employees,” Jon Seiffer, senior partner at Leonard Green, said in a statement.

Josh Lutzker, Managing Director at Berkshire Partners, said, “This next chapter with The Home Depot is a logical step in SRS’ evolution and will mutually benefit both companies’ growth prospects for the benefit of all employees, customers, and suppliers.” 

The transaction is expected to close by the end of fiscal 2024, SRS said.

David Seeley contributed to this report.

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