The Home Depot, Inc.
SRS's 2,500-plus professional sales force and 760-plus branch network across 47 states, together with its 4,000-plus truck fleet and jobsite delivery capabilities, will enable Home Depot to extend its offering to residential specialty trade pros.
SRS is expected to accelerate Home Depot's growth with the residential professional customer and aid it in better serving complex project purchase occasions with the renovator/remodeler.
With this buyout, the company now sees its total addressable market stand at approximately $1 trillion, an increase of roughly $50 billion.
Ted Decker, chair, president, and CEO, said, "SRS's branch network, coupled with The Home Depot's 2,000+ U.S. stores and distribution centers, comprehensive product offering, and extensive pro brands, provides the residential pro customer with more fulfillment and service options than ever before."
This transaction is anticipated to be dilutive to Home Depot's GAAP EPS due to amortization expense but accretive from a cash EPS perspective in the first year, post-closure (excluding synergies).
The company plans to fund the deal through cash on hand and debt. The acquisition is expected to close by the end of fiscal 2024, subject to customary closing conditions.
Home Depot held $3.76 billion in cash and equivalents as of January 28, 2024.
Investors can gain exposure to the stock via iShares U.S. Consumer Focused ETF
Price Action: HD shares are trading lower by 0.61% at $383.54 on the last check Thursday.
