In an ongoing bid to cater to building professionals, Home Depot will be spending $18 billion to buy roofing company SRS Distribution.
According to the Wall Street Journal, SRS — which is currently owned by private equity firms — has 760 locations along with 4,000 trucks that transport materials to job sites. The company reported around $10 billion in revenue in 2023.
Some 50% of Home Depot's customers are still smaller-scale, do-it-yourself builders who shop at their brick and mortar stores, although their retail sales dipped by 3% in 2023 as demand has slowed.
In response to that, they've made a concerted effort in recent months to attract more contractors and home-building professionals. On March 14, the company announced that it would be opening four new distribution centers to allow for bigger orders involving lumber, shingles, and insulation to deliver straight to pro building sites. By bringing SRS into the fold, Home Depot hopes to continue expanding its offerings for professionals.
The deal is expected to be finalized by the end of the 2024 fiscal year, pending regulatory approvals.
