Home Depot is making a $18.25B bet on pros and contractors – The Average Joe
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    Home Depot is making a $18.25B bet on pros and contractors

    Noah Weidner

    March 28, 2024

    Home improvement giant Home Depot ($HD) has witnessed a nearly doubled stock value over the last five years, thanks to a boost in revenue from bored homeowners looking to fix up their homes. But with the DIY bump ending, Home Depot hopes to fuel its next phase of growth by targeting professionals — and to capture their spending, the company is embarking on its biggest acquisition to date.

    • Home Depot will buy SRS Distribution — a specialized supplier catering to professional roofers, landscapers, and pool businesses — for $18.25B.
    • This strategic move is expected to broaden Home Depot’s customer base to include professionals working on larger projects, an effort CEO Ted Decker believes will expand its addressable market by $50B to $1T.

    Going pro: Decker views the acquisition as a “complementary accelerator” for the company’s professional segment, which already represents half of its business. With SRS on board, Home Depot will pick up a salesforce dedicated to big buyers, along with 760 unique branches and over 4K delivery trucks, which will supercharge the company’s growing network of distribution centers.

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