Posted 4/1/2024, 4:29:35 PM
Home Depot to Acquire SRS Distribution for $18.25B, Strengthen Market Position But Dilute Near-Term GAAP Earnings
- Analysts predict Home Depot's acquisition of SRS Distribution for $18.25B will strengthen market position and drive earnings growth
- Deal provides entry to become leading multi-trade distributor, increases total addressable market by $50B
- Acquisition expected to be accretive to non-GAAP earnings in first year, dilutive to GAAP earnings due to amortization
- Home Depot expects to exceed long-term 3-4% annual sales growth and mid- to high-single digit earnings growth
- Home Depot shares fell nearly 3% on Monday after the SRS acquisition announcement