ATLANTA, June 18,
2024 /PRNewswire/ -- The Home Depot®, the
world's largest home improvement retailer, has completed the
acquisition of SRS Distribution, Inc. ("SRS") for a total
enterprise value of approximately $18.25
billion. SRS is a leading residential specialty trade
distribution company across several verticals serving the
professional roofer, landscaper and pool contractor. The agreement
to acquire SRS was announced on March 28,
2024.
"SRS is an excellent fit for The Home Depot – it's both
complementary and additive to our growth," said Ted Decker, chair, president and CEO. "Their
ability to quickly build leadership positions in each of their
specialty trade verticals is a testament to the team's strong
vision, leadership, culture and execution. SRS's outstanding
customer service, capabilities, and expertise will help us drive
value for our customers, associates and shareholders, and we're
excited to welcome the SRS team to The Home Depot."
The acquisition will increase the company's total addressable
market to approximately $1 trillion,
an increase of approximately $50
billion. The combination of the two businesses will
accelerate The Home Depot's growth with the residential
professional customer. SRS complements The Home Depot's
capabilities and enables the company to better serve the complex
purchase occasion, while also establishing The Home Depot as a
leading specialty trade distributor across multiple verticals.
About The Home Depot
The Home Depot is the world's
largest home improvement specialty retailer. At the end of the
first quarter of fiscal year 2024, the company operated a total of
2,337 retail stores in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The company employs approximately
465,000 associates. The Home Depot's stock is traded on the New
York Stock Exchange (NYSE: HD) and is included in the Dow Jones
industrial average and Standard & Poor's 500 index.
About SRS Distribution
Founded in 2008 and headquartered in McKinney, Texas, SRS has grown to become one
of the fastest growing building products distributors in
the United States. Since the
Company's inception, it has established a differentiated growth
strategy and entrepreneurial culture that is focused on serving
customers, partnering with suppliers, and attracting the industry's
best talent. SRS currently operates under a family of distinct
local brands encompassing more than 760 locations across 47 states.
For more information, visit www.srsdistribution.com.
Certain statements contained herein constitute
"forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements may
relate to, among other things, the acquisition of SRS Distribution
Inc., which involves substantial risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied by such statements (the "acquisition"); statements about
the potential benefits of the acquisition; risks related to the
ability to realize the anticipated benefits of the acquisition,
including the possibility that the expected benefits from the
transaction will not be realized or will not be realized within the
expected time period; the risk that the businesses will not be
integrated successfully; disruption from the acquisition making it
more difficult to maintain business and operational relationships;
negative effects of announcing the consummation of the acquisition
on the market price of our common stock, credit ratings or
operating results; significant costs associated with the
acquisition; unknown liabilities; the risk of litigation; the
demand for our products and services, including as a result of
macroeconomic conditions; net sales growth; comparable sales; the
effects of competition; our brand and reputation; implementation of
interconnected retail, store, supply chain and technology
initiatives; inventory and in-stock positions; the state of the
economy; the state of the housing and home improvement markets; the
state of the credit markets, including mortgages, home equity
loans, and consumer credit; the impact of tariffs; issues related
to the payment methods we accept; demand for credit offerings;
management of relationships with our associates, potential
associates, suppliers and service providers; cost and availability
of labor; costs of fuel and other energy sources; events that could
disrupt our business, supply chain, technology infrastructure, or
demand for our products and services, such as international trade
disputes, natural disasters, climate change, public health issues,
cybersecurity events, geopolitical conflicts, military conflicts,
or acts of war; our ability to maintain a safe and secure store
environment; our ability to address expectations regarding
environmental, social and governance matters and meet related
goals; continuation or suspension of share repurchases; net
earnings performance; earnings per share; future dividends; capital
allocation and expenditures; liquidity; return on invested capital;
expense leverage; changes in interest rates; changes in foreign
currency exchange rates; commodity or other price inflation and
deflation; our ability to issue debt on terms and at rates
acceptable to us; the impact and expected outcome of
investigations, inquiries, claims, and litigation, including
compliance with related settlements; the challenges of operating in
international markets; the adequacy of insurance coverage; the
effect of accounting charges; the effect of adopting certain
accounting standards; the impact of legal and regulatory changes,
including changes to tax laws and regulations; store openings and
closures; guidance for fiscal 2024 and beyond; financial outlook;
and the impact of acquired companies on our organization and the
ability to recognize the anticipated benefits of any
acquisitions.
Forward-looking statements are based on currently available
information and our current assumptions, expectations and
projections about future events. You should not rely on our
forward-looking statements. These statements are not guarantees of
future performance and are subject to future events, risks and
uncertainties – many of which are beyond our control, dependent on
the actions of third parties, or currently unknown to us – as well
as potentially inaccurate assumptions that could cause actual
results to differ materially from our historical experience and our
expectations and projections. These risks and uncertainties
include, but are not limited to, those described in Part I, Item
1A, "Risk Factors," and elsewhere in our Annual Report on Form 10-K
for our fiscal year ended January 28,
2024 and also as may be described from time to time in
future reports we file with the Securities and Exchange Commission.
There also may be other factors that we cannot anticipate or that
are not described herein, generally because we do not currently
perceive them to be material. Such factors could cause results to
differ materially from our expectations. Forward-looking statements
speak only as of the date they are made, and we do not undertake to
update these statements other than as required by law. You are
advised, however, to review any further disclosures we make on
related subjects in our filings with the Securities and Exchange
Commission and in our other public statements.
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SOURCE The Home Depot