Home Depot buys supplier of professional builders for $18.25 billion

Home Depot will buy SRS Distribution, a supplier of materials for construction professionals, in a deal valued at about $18.25 billion.

It is the largest acquisition in Home Depot’s history and, with it, enters the sector of construction companies and professional contractors, a rapidly growing business.

SRS supplies materials to roof and pool builders or landscapers, among others.

Home Depot points out that, taking this operation into account, it considers that its total market reach is around $1 trillion, which represents an increase of approximately $50 billion.

“SRS has built a strong and successful platform that will accelerate our growth into the residential professional customer, while introducing future opportunities with the specialty trade professional,” Home Depot CEO Ted Decker said in a statement.

SRS has a sales team of more than 2,500 people and more than 760 stores in 47 states, in addition to a fleet of more than 4,000 trucks and the capacity to make home deliveries.

The deal is expected to close by the end of fiscal 2024.