MCKINNEY, Texas — Editor's note: This article was originally published in the Dallas Business Journal here.
SRS Distribution Inc., a McKinney-based building materials company, has struck a deal to be acquired by The Home Depot for about $18.25 billion, including debt.
Atlanta-based Home Depot (NYSE: HD) said March 28 that SRS "complements The Home Depot's capabilities and will enable the company to better serve complex project purchase occasions with the renovator/remodeler."
SRS sells materials to professional roofers, landscapers and pool contractors across a network of more than 760 stores. It has 11,000-plus employees and a fleet of more than 4,000 trucks to deliver materials to job sites. The company produces more than $10 billion in annual revenue, according to an announcement from Berkshire Partners and Leonard Green & Partners, the private equity owners of SRS.
That top-line sales number is up from about $650 million in revenue in 2013, when SRS had fewer than 100 branches, according to the PE firms' announcement. SRS has been buying local and regional distributors in recent years but maintaining their brands, the Wall Street Journal reported. Those brands include Advanced Buildings Products, American Roofing Supply and Arrowhead Building Supply.
SRS President and CEO Dan Tinker and the rest of the senior leadership team at the McKinney company will remain in place, according to the announcement.
The SRS team looks forward "to combining our differentiated assets and capabilities, including our extensive branch network, experienced sales team, robust trade credit offering, and order management system, geared at serving the complex project purchase occasion, with The Home Depot's competitive advantages," Tinker said in a statement.
SRS is owned by private equity firms and Berkshire Partners.
Home Depot, which has around 4,000 stores, said it would fund the deal with cash on hand and debt. The acquisition is expected to close by the end of Home Depot's 2024 fiscal year, which goes into next January, pending regulatory approval and other customary closing conditions.
