Home Depot announced its acquisition of SRS Distribution for an enterprise value of $18.25 billion, including debt, marking the largest purchase in the company's history. This strategic move aims to bolster Home Depot's presence in the professional contractor market, as it seeks to expand its reach beyond its traditional do-it-yourself customer base amidst slowing sales in that segment. The acquisition is expected to enhance Home Depot's offerings to professional builders and contractors, particularly in roofing and building supplies, with SRS's 2023 financials indicating approximately $10 billion in revenue and $1.1 billion in EBITDA. The deal signifies Home Depot's commitment to capturing a larger share of the professional market, which is seen as a key growth area, and anticipates the expanding Total Addressable Market (TAM) to $1 trillion. To finance the acquisition, Home Depot plans to raise $12.5 billion through unsecured debt, along with potential commercial paper offerings, aiming for a pro forma leverage of 2.5x post-deal and a deleveraging timeline of 24 months to approximately 2.0x, with buybacks paused during this period.
Home Depot buying supplier to professional contractors in a deal valued at about $18.25 billion https://t.co/VDEkQWPRrP
Home Depot acquired SRS for $18 billion today SRS is only 16 years old 1.1 Billion per year it’s been open We are about 30% of our local SRS volume This acquisition makes me ask two questions: 1. Should I start/acquire a distribution company? 2. Will this affect my… https://t.co/tw9uNnKhX0
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. https://t.co/W8tpGsuxo7
Home Depot buying SRS Distribution, a supplier to professional contractors https://t.co/no9A46rF3j https://t.co/b8eL0I4AQa
Post $HD call: substantial opportunity on the margin recovery side. SRS EBITDA margin of ~11.0% versus Home Depot's 16.0%. +SRS sales provide an incremental 600-700 basis points to Home Depot's topline growth. + light years ahead of $LOW in Pro.
🇺🇸 Home Depot to acquire building products supplier for $18.25B https://t.co/JCGMAk12iD
Home Depot’s largest acquisition ever is an $18.25 billion bet on the housing market’s severe shortage of new homes. https://t.co/Ktq9YaO8cz
🇺🇸 Home Depot is acquiring specialty distributor SRS for $18.25 billion in huge bet on growing pro sales https://t.co/eKobYOhpBX
Home Depot told investors it expects to take on $12.5 billion of new debt to help finance its purchase of building-products distributor SRS Distribution https://t.co/Hs1yloO0Es
Home Depot will buy SRS Distribution, a materials provider for professionals, in a deal valued at approximately $18.25 billion. https://t.co/oPNHFbW6Od
LISTEN NOW: Home Depot has made an $18B deal for SRS Distribution, attempting to expand its reach among home improvement professionals. We discuss. Listen and follow the @SquawkCNBC podcast here: https://t.co/gZaa8fjg8c https://t.co/vOSvmDHbGv
Home Depot buying Texas-based supplier to professional contractors in $18.25 billion deal https://t.co/5fO69X5oHB
$HD Home Depot is raising $12.5 billion of unsecured debt and perhaps commercial paper to fund the $SRS deal...
Home Depot acquires SRS Distribution in $18 billion purchase to attract more pro customers https://t.co/l93iD2oH4n
Home Depot is buying building materials supplier SRS Distribution for around $18.25 billion. https://t.co/tEglCDDkpO
Home Depot is buying SRS Distribution, a materials provider for professionals, as its largest acquisition in history, which cost approximately $18.25 billion. https://t.co/IDKHX2UU0j
Home Depot is doubling down on being a leading supplier to contractors. https://t.co/7jPFM7VLBa
Home Depot to acquire SRS for $18.25bn Complements $HD Pro ecosystem for complex projects 2023 financials: ~$10bn revenue, $1.1bn EBITDA Dilutive to GAAP EPS but accretive to cash EPS in year 1 Pro forma 2.5x leverage post-deal 24 months to delever to ~2.0x; buybacks paused https://t.co/mihzSxFqdp
$HD Home Depot announced that it is acquiring SRS Distribution for $18 billion, which gives it more exposure to the professional market (contractors and roofers). $LOW SRS, which is owned by private-equity firms, is "an industry leader with a proven track record of profitable…
The Home Depot has agreed to acquire SRS Distribution, a private equity-backed distributor of roofing and building supplies, for $18.25 billion, inclusive of debt. https://t.co/TfSN1QuIt7
Home Depot paying $18 billion to buy SRS Distribution https://t.co/oHW4S3Z88o
Home Depot, in an $18 billion deal for a roofing distributor, plans to supply big construction jobs as its traditional do-it-yourself sales slow https://t.co/Alo88MWqvp via @WSJ
$HD Home Depot said it's acquiring SRS Distribution in an $18.25 billion deal. It's the company's latest and biggest push to win sales from home professionals such as contractors who tackle major projects.
Home Depot's proposed $18b takeover of SRS Distribution, which is backed by Leonard Green and Berkshire Partners, takes the Q1 M&A tally to $700 billion on the last trading day of the quarter. Here's what dealmakers were saying earlier in the week: https://t.co/CD4bKBVwG0
Home Depot will buy building materials supplier SRS Distribution in an $18.25 billion deal including debt, the top US home improvement chain said, beefing up its business to professional customers as the industry tackles tepid demand https://t.co/uR8UkDujVU
Home Depot to buy building supply distributor SRS in $18B deal — its biggest acquisition ever https://t.co/ca2TqNMmS1 https://t.co/rA926SlF8A
Home Depot $HD agrees to buy SRS Distribution, sees TAM expanding to $1 trillion https://t.co/Z4edkAlxgD https://t.co/4g8kPxPccD
Home Depot $HD announced today that it has agreed to acquire SRS Distribution in an $18.25 billion deal - CNBC
Good Morning! It's not just retail investors making big bets this year $HD just made their largest investment ever as a company -- acquiring specialty distributor SRS for $18.25 billion https://t.co/OvDehxtIjn
Home Depot is spending big to go pro, buying distributor SRS Distribution for $18.25 billion, $HD’s biggest acquisition, @melissa_repko reports. https://t.co/qD4HjdZFQ2
Home Depot pays $18.25 billion for McKinney’s SRS Distribution to expand contractor sales https://t.co/ovMKeGatKT
Home Depot buying supplier to professional contractors in a deal valued at about $18.25B https://t.co/mYuN2RV5ad
$HD (+0.2% pre) Home Depot to buy specialty distributor SRS Distribution in $18.25B deal - SA https://t.co/a8GHoJ8l07
Home Depot says it will buy roof-supply firm SRS Distribution for about $18.25 billion https://t.co/RIyqM0Tw0H
No mention in this piece (yet) on who the seller is. (I believe this is a private equity portfolio company). Home Depot is acquiring specialty distributor SRS for $18.25 billion in huge bet on growing pro sales https://t.co/02IMPIkBzv
".. The acquisition is the largest in Home Depot’s history." @CNBC $HD https://t.co/ZhAasPCinI
Home Depot acquires specialty trade distributor SRS for $18.25 billion https://t.co/18ayyxAxju
NEW YORK (AP) - Home Depot to buy supplier SRS Distribution for $18 billion, capitalizing on growing business with professional builders. $HD
BREAKING: Home Depot buying supplier to professional contractors in a deal valued at about $18.25B https://t.co/3FAhxaFrDd
Home Depot to buy SRS Distribution in $18.25 bln deal https://t.co/d6PGQ5Lhbz https://t.co/4Pt3rOmEHo
Home Depot to buy SRS Distribution in $18.25 billion deal https://t.co/EXUgo0avV0
Home Depot, in an $18 billion deal for a roofing distributor, plans to supply big construction jobs as its traditional do-it-yourself sales slow https://t.co/dOh86dkHjR https://t.co/dOh86dkHjR
Home Depot to Acquire Pro Contractor-Focused SRS Distribution for $18.25 Billion https://t.co/tZr8yO2DAU
⚠️ HOME DEPOT TO BUY SRS DISTRIBUTION IN $18.25 BILLION DEAL Full Story → https://t.co/6wqWLh5CLS Home Depot said on Thursday it would buy building products distributor SRS Distribution in a deal valued at about $18.25 billion including debt.
Home Depot is acquiring specialty distributor SRS for $18.25 billion in huge bet on growing pro sales https://t.co/Q4K6mzSQdC
$HD #HomeDepot is acquiring specialty distributor SRS for $18.25 billion in huge bet on growing pro sales https://t.co/r6MZnPvP82
$HD | Home Depot To Buy SRS Distribution For Enterprise Value $18.25Bln - CNBC https://t.co/eQwFLq6WfT
$FOUR -22% since strong ER. Great fwd estimates. Approaching 200d and horizontal support https://t.co/kXffy9pIL9