Roofing Industry Reacts to Home Depot Acquisition of SRS Distribution

The pace of mergers and acquisitions in the roofing industry continued through the first quarter of 2024 and culminated with the major news that Home Depot purchased SRS Distribution

The $18.25 billion deal sent a seismic ripple effect of reaction industrywide. 

Craig Webb is president of Webb Analytics, a research and consulting firm that reports trends intended to help construction supply companies. As one of the nation’s leading experts on building material dealers and distributors, Webb said he followed the flurry of last week’s news closely and said it should have a big impact.

Webb said the acquisition is a continuation of a long-term strategy by Home Depot to increase its presence in the pro contractor market. It began last year with Home Depot’s acquisition of the 44-unit International Designs Group, one of four key consolidation moves made industry-wide last year, according to Webb’s annual report. 

International Designs Group is a platform company that owns and operates design-oriented subsidiaries, including Construction Resources — a leading distributor of design-oriented surfaces, appliances and architectural specialty products for professional contractors in home renovation and remodeling space. At that time, Home Depot officials said they were focused on capturing a larger share of the market by serving professional contractors of all sizes and specialties. They also said their goal was to build a unique, interconnected “ecosystem” to help professional contractors build their businesses through its offerings.

Webb noted that the SRS acquisition helps Home Depot work toward that goal by deepening its product mix and leveraging the national distributor’s current relationships with roofing contractor networks worldwide.

“Most of the roofing products that SRS sells already are in the Home Depot catalog, but SRS might be able to help with some more obscure products,” he said. “All those trucks and locations also might help speed delivery of products when The Home Depot gets an order and can pass it along to SRS for fulfillment.” 

The Home Depot also benefits from the distributor’s recent investments in technology and the fact that SRS knows a lot about billing customers and getting paid over time. 

“For all its size, The Home Depot still is pretty much a cash-and-carry business. It’s only experimenting now with trade credit,” Webb noted. “During the analysts’ call, Home Depot people even said they could see SRS taking over all management of trade credit for The Home Depot.”

News also sparked a lot of engagement and activity on RC’s social media channels, including LinkedIn, where several industry observers chimed in. 

“Intriguing move by Home Depot! This could be a big win for pro contractors,” wrote RC LinkedIn follower Abu Sayeed, an SEO specialist based in England. 

“When the tide rises, all ships float. Very good indicator!” wrote Uzziel Jaramillo, a roofing contractor from Lakeland, Fla.

Roofing contractor Joseph Ruggiana offered some candor and a suggestion.

“Maybe Home Depot will start carrying real roofing supplies instead of the … crap they carry now,” wrote the veteran roofer from CMR Construction & Roofing in Florida. 

Company officials did not respond to a list of follow-up questions from RC at publication time. However, SRS President and CEO Dan Tinker turned to social media to reiterate his excitement for this “next stage of growth” and commended the work of the employees to get the company into prime position for this opportunity.

“We are honored to be combining with The Home Depot,” he posted on his personal LinkedIn page. “It is a testament to all the hard work, dedication, and commitment of our 11,000 amazing team members. We are just getting warmed up!”

Officials with Beacon Building Products declined comment. 

Independent distributors said that while full impact of the deal won’t be known for several months or longer, it’s an opportunity for them to focus on what they excel at: customer care.

“As the leading cooperative of independent roofing and siding distributors, we understand the full industry impact of the THD/SRS acquisition remains uncertain. That said, independent distributors maintain a distinct advantage due to our close relationships with customers, ensuring tailored solutions and unwavering support,” said Curt Gomes, executive director of the Independent Distributor Alliance Corporation (IDAC).

“As the landscape evolves, IDAC members remain steadfast in our dedication to delivering value and expertise to our customers and suppliers.”

“The purchase of SRS by Home Depot will create opportunities for all in the pro segment of our industry,” said NEMEON President and CEO David O’Donnell.

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