Home Depot wants to be a major handyman.
The home improvement retailer is spending $18.25 billion in a new deal, that includes assumed debt, to acquire SRS Distribution, a product supplier for roofing, landscaping, and pool builders, the company said in a statement. It’s Home Depot’s largest acquisition ever, the company said.
Atlanta, Georgia-based Home Depot said the deal will be funded through cash and some debt, adding that it expects the agreement to be completed by the end of the fiscal 2024 year, pending regulatory approval.
With the acquisition, Home Depot believes that its “total addressable market is approximately $1 trillion.”
That could bode well for the world’s largest home improvement company as it looks to capture the attention of consumers, who are still feeling the brunt of inflation.
Moreover, Home Depot may be looking to get a hold of its declining sales, which skyrocketed during the pandemic as consumers looked to stay busy with DIY at home projects.
Home Depot CEO Ted Decker said that with the “branch network” of SRS and the retailer’s “2,000 + U.S. stores and distribution centers,” it will be able to offer more products and ramp up fulfillment.
Currently, SRS has about 760 locations across 47 U.S. states and more than 4,000 trucks.
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