Mar 28, 2024 - Business

Home Depot paying $18 billion to buy SRS Distribution

Home Depot store

Photo: Brandon Bell/Getty Images.

Home Depot on Thursday agreed to buy building materials supplier SRS Distribution for around $18.25 billion from private equity firms Leonard Green & Partners and Berkshire Partners.

The big picture: Inflation has caused many homeowners to scale back on large DIY projects, leading Home Depot and its rivals to scale up offerings for professional builders and contractors.

  • Good thing for Home Depot that in 2020 it bought back the HD Supply business it had previously sold off.
  • Until today, that $8 billion repurchase was the most Home Depot had ever paid in an acquisition.

Catch up quick: Leonard Green bought SRS in 2018 for around $3 billion from Berkshire Partners, which retained a minority stake. Berkshire five years earlier had acquired the McKinney, Texas-based company from AEA Investors.

The bottom line: This is the fifth-largest global merger of 2024, according to LSEG, and easily the largest private equity exit.

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