Industry Updates - May 2024

Fri, May 10, 2024 at 1:35PM

SRS Distribution Combining with The Home Depot

SRS Distribution Inc. (SRS) announced that it has entered into a definitive agreement with The Home Depot to be acquired for $18.250 billion. Under the terms of the agreement, SRS Distribution will operate as an independent business unit within The Home Depot.

The proposed acquisition will clear a path for accelerated growth with the residential and commercial professional customer by expanding The Home Depot’s Pro capabilities, combining online, retail and wholesale. The combined platform will open new opportunities for existing suppliers and partners by providing access to SRS’ expert workforce focused on specialty verticals, as well as The Home Depot’s cross-project expertise, product mix, network and digital assets.

Under the agreement, the SRS senior leadership team will remain with the company to guide its ambitious growth plans. Dan Tinker, President and CEO of SRS, will continue to lead SRS operations, reporting to The Home Depot CEO Ted Decker.

“We are proud to be combining with The Home Depot to continue our growth journey with the additional resources and capabilities they will put behind us,” said Tinker. “We set out to find the optimal strategic outcome for the business and we strongly believe we have achieved just that. With this combination, the future has never been brighter for our supplier partners, our Pro customers and our team.”

“SRS’ ability to build leadership positions in each of its trade verticals while generating significant revenue growth is a testament to its strong vision, leadership, culture and execution,” said Decker. “SRS’ branch network, coupled with The Home Depot’s 2,000-plus U.S. stores, distribution centers and product offering provide the residential and commercial Pro customer with more fulfillment and service options than ever before. I look forward to welcoming Dan and the entire SRS team to The Home Depot and capturing the exciting opportunity ahead.” The transaction is expected to close by the end of fiscal 2024 and is subject to regulatory approvals and other customary closing conditions.

Carlisle Companies to Acquire MTL Holdings

Carlisle Companies Inc. has entered into a definitive agreement to acquire MTL Holdings from GreyLion Partners, a leading U.S. private equity firm. Under the terms of the agreement, Carlisle Companies will purchase MTL Holdings for $410 million.

MTL Holdings is a provider of prefabricated perimeter edge-metal systems and noninsulated architectural metal wall systems for commercial, institutional and industrial buildings. The company generated revenue of $132 million during the 12 months ending February 29.

“The acquisition of MTL is consistent with Vision 2030 and our intent to build on our strategic pivot to a pure-play building products company with increased investment in innovation, a continued emphasis on synergistic mergers and acquisitions, attracting and retaining top talent and fulfilling our sustainability commitments,” said Chris Koch, Chair, President and CEO of Carlisle Companies. “By acquiring MTL and leveraging the Carlisle operating system across the business, I am confident that we will create significant value for all our stakeholders. We look forward to welcoming Tony Mallinger and MTL’s talented team to Carlisle.” The acquisition is expected to close during the second quarter of 2024.

FRM


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