Home Depot and SRS Distribution: How Private Equity Built an $18.25 Billion Exit
In 2024, The Home Depot paid about $18.25 billion for SRS Distribution, a roofing, landscape and pool supplier that three private equity owners built through more than 100 acquisitions. Home Depot kept SRS whole, then used it to keep buying.
Key takeaways:
· How AEA Investors, Berkshire Partners and Leonard Green grew SRS from 7 branches to more than 760
· Why Home Depot paid about 16x EBITDA, and why about 61% of the price was goodwill
· Why Home Depot left SRS on its own instead of folding it into its stores
· How SRS outbid QXO for GMS, then bought HVAC distributor Mingledorff's
· Five…
The skinny
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