Home Depot gains masonry, stone representation and pro accounts in SRS deal

Sources: SRS Distribution Inc., McKinney, Texas; CP staff

Berkshire Partners LLC and Leonard Green & Partners L.P, lead SRS Distribution Inc. investors, have entered definitive agreement to sell their building products business to Atlanta-based The Home Depot in an $18.250 billion deal. SRS Distribution has 750 locations across 46 states and will operate as an independent unit within the home improvement retailing giant, focused on accelerating growth among professional accounts. With private equity backing, SRS has emerged since 2008 as one of the fastest growing building products distributors. While its portfolio is weighted in conventional roofing and siding, the firm has a presence in natural and architectural cut stone, manufactured veneer stone, cast stone, masonry supplies, fiber cement products and concrete roof tile through Pennsylvania-based Instone, Texas-based Rock Materials plus other regional distribution or retail outlets. SRS acquired two-yard Rock Materials, part of Worldwide Rock Enterprises, late last year. 

SRS Distribution has built a strong residential and commercial professional account base through acquisitions and local or regional brand promotion.

With scheduled closing by year end, the proposed acquisition will clear a pathway for accelerated professional account growth by expanding The Home Depot’s Pro capabilities, combining online, retail, and wholesale. The united platform will open new opportunities for existing suppliers and partners by providing access to an SRS workforce focused on specialty verticals, as well as The Home Depot’s cross-project expertise, product mix, network, and digital assets.  

“We set out to find the optimal strategic outcome for the business, and strongly believe we have achieved just that. With this combination, the future has never been brighter for our supplier partners, our Pro customers, and our team,” says SRS CEO Dan Tinker, who will remain at the helm. 

“SRS’ ability to build leadership positions in each of its trade verticals while generating significant revenue growth is a testament to its strong vision, leadership, culture, and execution,” adds Home Depot CEO Ted Decker. “SRS’ branch network, coupled with our 2,000+ U.S. stores or distribution centers and comprehensive product offering provides the residential and commercial Pro customer with more fulfillment and service options than ever before.”

“This next chapter with The Home Depot is a logical step in SRS’ evolution and will mutually benefit both companies’ growth prospects,” affirms Berkshire Partners Managing Director Josh Lutzker.

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