SRS Distribution
2024
$18.3B
Why
SRS Distribution is the second-largest specialty trade distributor in the United States, operating approximately 760 branch locations serving professional roofing, pool, and landscape contractors under brands including Roofing Supply Group. The acquisition was designed to expand Home Depot's ability to serve professional contractors through job-site delivery—a service model that is different from store-based retail and that addresses the supply needs of trades that require bulk material delivery to construction sites. Management identified SRS as the most compelling available asset for building out the Pro ecosystem strategy that CEO Ted Decker had prioritized since assuming leadership.
Impact
SRS contributed approximately $6.4 billion in revenue to Home Depot's consolidated results for the approximately six months following the deal's June 2024 close, making it the single largest contributor to fiscal 2024 revenue growth. The acquisition added approximately 4,000 professional contractor accounts to Home Depot's customer base, many of whom had not previously been primary Home Depot customers due to the company's prior lack of job-site delivery capability in roofing and other specialty trades. Management has identified approximately $500 million in annual cost operational efficiencies achievable through procurement consolidation, logistics integration, and shared services rationalization.
Outcome
Integration of SRS into Home Depot's operational and technology infrastructure is ongoing as of mid-2025, with early results described by management as in line with expectations. The acquisition elevated Home Depot's long-term debt to approximately $47.6 billion, requiring a multi-year deleveraging program. Revenue operational efficiencies from cross-selling have begun but are expected to build over several years as the two customer bases are more fully connected through shared digital procurement tools and Pro account management.