The portfolio company of Leonard Green & Partners and Berkshire Partners, SRS Distribution (“SRS”), has entered into a definitive agreement with The Home Depot to be acquired for $18.25 billion. The details of this sale were made public in press releases issued this morning by The Home Depot and SRS. SRS is a leading distributor of residential and commercial building products in the United States, with more than 760 branches across 47 states. The Home Depot is the world’s largest home improvement retailer.
“We feel privileged to have had the opportunity to invest in and partner with SRS and its more than 11,000 employee stakeholders,” said Jonathan Seiffer, Senior Partner, Leonard Green & Partners. “We extend a heartfelt thank you and congratulations to the entire team at SRS on their remarkable history of growth. SRS’s legacy of success and achievement would not have been possible without the phenomenal leadership of CEO Dan Tinker and his team and Chairman Ron Ross, as well as the unique culture and operating model that they have forged at SRS.”
“Since our investment in SRS 11 years ago, we’ve enjoyed a highly collaborative and effective partnership with CEO Dan Tinker and the entire SRS management team and we’re thrilled to reach such a successful milestone in this announced sale to The Home Depot,” said Josh Lutzker, Managing Director, Berkshire Partners. “SRS started as a small, regional player and has grown into a national platform serving multiple end markets. We’re all proud to be associated with such a great team and growth story.”
“We’re thrilled to be combining with The Home Depot, which is a direct result of the unwavering commitment and dedication from the entire team at SRS,” said Dan Tinker, President, and CEO of SRS Distribution. “I’m so proud of our company, our strong culture, and our impressive growth story. Throughout this journey, we’ve accomplished so much for our customers, our suppliers, our community, and our employees. I’m also grateful for the support and guidance we received from our private equity partners – Leonard Green & Partners and Berkshire Partners. Both firms take a collaborative and long-term approach to engagement and value creation, which has contributed significantly to the success of our business.”
Berkshire Partners invested in SRS in 2013 when the company generated approximately $650 million of revenue with fewer than 100 branches, distributing primarily residential roofing supplies. Today, SRS operates more than 760 branches in almost every state producing more than $10 billion in annual revenue.
In 2018, Leonard Green & Partners became majority owner of SRS, with Berkshire Partners remaining a significant shareholder. Over the duration of the partnership, both private equity firms helped evolve and grow the best-in-class leadership team at SRS. Through its entry into landscaping distribution in 2019 and pool distribution in 2021, SRS also significantly expanded the breadth of industries it served. SRS also has a remarkable commitment to employee ownership, which drives a thriving culture and compelling results. The company’s widespread employee ownership and equity incentive programs have helped to reinforce high levels of engagement and strong company performance.