Home Depot To Buy SRS Distribution For $18.25 Bln

(RTTNews) - The Home Depot, Inc. (HD), a home improvement retailer, said on Thursday that it has signed a deal to acquire SRS Distribution Inc., a residential specialty distributer serving the professional roofer, landscaper, and pool contractor. Under the terms, a subsidiary of Home Depot will acquire SRS for around $18.25 billion, including net debt.

The transaction, to be closed by the end of fiscal 2024, is expected to be funded through cash on hand and debt.

Ted Decker, CEO of Home Depot, said: "SRS has built a robust and successful platform that will accelerate our growth with the residential professional customer while presenting future opportunities with the specialty trade pro."

This transaction is expected to be dilutive to net income per share of the acquirer due to amortization expense, but accretive from a cash EPS perspective in the first year, post-closing, excluding synergies.

Post transaction, Home Depot believes that its total addressable market will be around $1 trillion, an $50 billion increase.

HD was trading down by 0.77 percent at $382.91 in the pre-market trade on the New York Stock Exchange.