The Home Depot, Inc. (NYSE:HD) entered into a definitive agreement to acquire SRS Distribution Inc. for a total enterprise value of approximately $18.25 billion on March 27, 2024. Under the terms of the merger agreement, The Home Depot will acquire SRS for a total enterprise value (including net debt) of approximately $18.25 billion. The closing of the acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to be completed by the end of fiscal 2024.

The transaction is expected to be funded through cash on hand and debt. This transaction is expected to be dilutive to earnings-per-share (EPS) from a GAAP perspective due to amortization expense, but accretive from a cash EPS perspective in the first year, post-closing, excluding synergies. J.P. Morgan Securities LLC served as exclusive financial advisor and Weil, Gotshal & Manges LLP served as legal counsel to The Home Depot in connection with the transaction.