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Home Depot already gets half of its sales from professionals, while the other half comes from DIY customers. The deal marks another attempt by the Atlanta-based company to acquire customers tackling complex and lucrative construction jobs, especially as homeowners retreat from do-it-yourself projects. That was one of the priorities Home Depot’s leaders set this year. It’s also why the company has opened a growing network of distribution centers where large quantities of items needed by professionals, such as lumber or shingles, can be stored and delivered directly to the job site.

The acquisition is the largest in Home Depot’s history.

In an interview with CNBC, CEO Ted Decker described the deal as “an additional accelerator” for efforts to attract more professionals. He said the deal increases Home Depot’s total addressable market by $50 billion.

It adds to other recent deals the retailer has made in the professional space. This includes its approximately $8 billion acquisition of HD Supply, a national distributor of maintenance, repair and operations products in the multifamily and hospitality markets, in 2020. Last year it also made two other acquisitions for undisclosed amounts: International Designs Group, owner of Construction Resources, a distributor of surfaces, appliances and other products that sells to home professionals; and Temco, an appliance supply and installation company.

SRS Distribution sells products to professionals in the green, swimming pool and roofing industries. The McKinney, Texas-based company has approximately 11,000 employees and 760 offices in 47 states. It also has a fleet of 4,000 vans and a dedicated sales team aimed at home professionals, Decker said.

Decker said he is confident the deal will be approved by federal regulators even as they increase scrutiny of mergers and acquisitions.

“With the separate customer base, the different channels and the different purchase points, we feel good about this continuing,” he said.

The acquisition is expected to be dilutive to Home Depot’s earnings per share due to depreciation, but will be accretive in terms of cash earnings per share in the first year after the deal closes.

Home Depot has focused on the professional sector as its growth has stagnated. The retailer, which has been a big beneficiary of pandemic trends, has seen moderating sales as consumers take on fewer home projects and spend more on groceries and experiences. In recent quarters, customers have purchased less expensive items and tackled smaller, less expensive projects.

Decker said during an earnings call last month that Home Depot would focus on opening new stores, attracting more professional sales and trying to make customers’ shopping experience more seamless.

Home Depot plans to open a dozen new stores this fiscal year. The company recently announced that it will open four distribution centers aimed at professionals.

The takeover comes after the The home improvement retailer said last month that it expects slower sales trends to continue. The company expects total revenue to grow approximately 1% for the full year, including an additional week in the fiscal year. Still, the company expects comparable sales, which exclude the effect of store openings and closures and exclude the additional week, to decline by approximately 1%.

Home Depot had a total of 2,335 stores in the U.S., Mexico and Canada at the end of January. Approximately 465,000 employees work there.

As of Wednesday’s close, shares of Home Depot are up about 11% this year. That’s slightly more than the 10% gain of the S&P 500. Home Depot’s stock closed Wednesday at $385.89, putting its market value at about $382 billion.

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