Mar 28, 2024 - Business

Home Depot paying $18 billion to buy SRS Distribution

Dan Primack

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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Home Depot paying $18 billion to buy SRS Distribution

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