The Home Depot Makes Largest Acquisition Ever, Expanding into Construction Materials Distribution

The Home Depot, the American DIY giant, has executed its largest acquisition ever with the purchase of SRS, an American distributor of construction materials, with the aim of "accelerating The Home Depot's growth with residential professional customers."

With this operation, close to 17 billion euros, The Home Depot aims to diversify its business towards the distribution of construction materials for large contractors and construction companies.

The Acquisition

The acquisition of SRS, which operates 760 specialized establishments and closed 2023 with a turnover of more than 9 billion euros, will allow The Home Depot to boost its growth in complex construction projects and expand its offering of professional products and brands.

"SRS has built a solid and successful platform that will accelerate our growth with residential professional customers while presenting future opportunities with Pro specialty trade," said Ted Decker, president, and CEO of The Home Depot.

The Home Depot believes its total market is nearly 1 trillion euros, representing an increase of over 46 billion euros.

Sales Drop at The Home Depot in 2023

The DIY giant aims to change course in its strategy after a 2023 closure in which The Home Depot saw a 3% drop in sales compared to 2022 revenue.

Profits in 2023 also notably declined, according to the company's report, as they amounted to $15.1 billion (13.98 billion euros), compared to $17.1 billion in 2022 (15.83 billion euros), representing a decrease of 11.5%.