Home Depot has announced its acquisition of building materials supplier SRS Distribution in a monumental $18.25 billion deal, marking the largest acquisition in the history of the top U.S. home improvement chain. The move is strategically aimed at expanding Home Depot's professional customer base, a crucial step as the company navigates through a period of sluggish demand.
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Home Depot has forecasted a slower recovery for the year ahead, attributing it to a pause in significant home remodelling and renovation projects amidst persistent inflationary pressures. With about half of its business originating from the Do-It-Yourself (DIY) segment, Home Depot is doubling down on its focus on "Pro-customers", which include professional builders and contractors, to drive sales growth.
The acquisition of SRS Distribution is poised to bolster Home Depot's capabilities significantly. By tapping into SRS' extensive warehouse network and delivery fleet, Home Depot aims to enhance its service offerings to its existing customer base. SRS, primarily catering to Pro-customers such as roofers, landscapers, and pool contractors, generated $10 billion in revenue in 2023 and will continue to operate as an independent unit within Home Depot.
Source: www.reuters.com