| Deal Overview | Home Depot is acquiring SRS Distribution, a materials provider for professionals, in a deal valued at approximately $18.25 billion. |
| Largest Acquisition | This deal marks Home Depot’s largest acquisition in its history, signaling a more aggressive entry into the professional builder and contractor market. |
| Target Market | SRS provides materials for professionals such as roofers, landscapers, and pool contractors. |
| Housing Market Bet | Home Depot is making a significant bet on the housing market, which is facing a severe lack of new homes, leading to skyrocketing prices. |
| Median Home Prices | Over the past five years, the median sales price for new homes in the U.S. has climbed by 29.4%, reaching $417,700 in the fourth quarter. |
| Recent Market Trends | The U.S. housing market experienced a two-year sales slump due to a shortage of homes and rising mortgage rates. |
| Market Recovery | Sales of previously occupied U.S. homes rose in February, driven by a modest pullback in mortgage rates, encouraging homebuyers. |
| Home Maintenance Demand | With high mortgage rates, millions of homeowners are investing in home upkeep, contributing to the financial drivers for the Home Depot-SRS deal. |
| Total Addressable Market | Home Depot estimates its total addressable market to be approximately $1 trillion, with the deal expanding it by approximately $50 billion. |
| Company Integration | Home Depot plans to leverage SRS’s sales team of over 2,500, 760+ branches across 47 states, a 4,000+ truck fleet, and jobsite delivery capabilities. |
| Leadership Continuity | SRS CEO Dan Tinker and his senior management team will continue to lead SRS, which is based in McKinney, Texas. |
| Expected Closing Date | The deal is expected to close by the end of fiscal 2024. |
