06:39 AM EDT, 03/28/2024 (MT Newswires) -- The Home Depot ( HD ) said Thursday it has agreed to acquire SRS Distribution, a distributor of supplies serving professional roofers, landscapers, and pool contractors, for $18.25 billion.

The deal is expected to close by the end of fiscal 2024, subject to customary closing and regulatory approvals. The acquisition is expected to be funded through cash on hand and debt.

SRS President and Chief Executive Dan Tinker will continue to lead the company while collaborating with The Home Depot ( HD ) management, a statement said.

The Home Depot ( HD ) said the acquisition will increase its ability to serve professional customers. The Home Depot ( HD ) said it now estimates its total market at approximately $1 trillion, an increase of approximately $50 billion. The company's Chief Financial Officer Richard McPhall said the company plans to access the debt capital markets to "raise incremental indebtedness" in completing the acquisition. "We expect the acquisition to create significant shareholder value over the long term," he said.

SRS employs a sales force of more than 2,500 and operates more than 760 branches in 47 states.

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