Home Depot's acquisition of SRS Distribution for $18.25 billion, which closed in June, represents the company's largest bet yet on expanding its professional (Pro) business. This strategic move significantly broadens Home Depot's reach into specialty trade distribution, particularly in roofing, landscape, and pool supplies.
The acquisition is expected to expand Home Depot's total addressable market by approximately $50 billion, bringing it to an estimated $1 trillion. SRS Distribution operates with over 11,000 employees and more than 780 branches across 47 states, providing a dedicated sales force and a deeper catalog of merchandise tailored for professionals.
SRS also brings critical capabilities such as trade credit, a financing arrangement essential for larger Pro projects, which Home Depot had only recently begun offering to a small portion of its own Pro customers. This integration is designed to accelerate Home Depot's Pro growth by catering to specialized contractors and enabling larger, job-site deliveries.
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