Home Depot to Buy SRS Distribution

Home Depot (NYSE:HD) announced its intention to purchase SRS Distribution for $18.25 billion, in what is a significant move to expand its services to professional clientele, including contractors and roofers. This acquisition is a strategic effort by the retail heavyweight to enhance its sales as the home improvement sector experiences a sluggish recovery, primarily due to cautious consumer spending amid ongoing inflation.

The company's traditional do-it-yourself (DIY) market has encountered challenges, prompting a shift in focus towards "Pro-customers" such as professional builders, contractors, and handymen to sustain revenue. Through the acquisition of SRS Distribution, Home Depot aims to widen its market reach by an additional $50 billion, targeting a new total market potential of approximately $1 trillion.