Home Depot's $18 Billion Acquisition: Genius Move or Waste of Money?
Home Depot (NYSE: HD) isn't known as a prolific acquirer, but every once in a while, the company makes a needle-moving acquisition. In 2020, it acquired HD Supply, a supplier in the maintenance, repair, and operations field, for $8 billion, and last year it bought Temco Logistics and International Designs Group for an undisclosed amount.
The company just announced its biggest acquisition ever, taking over SRS Distribution for $18.25 billion, including SRS's debt. Home Depot said the deal would expand its addressable market by around $50 billion, and CEO Ted Decker called SRS "An industry leader with a proven track record of profitable growth across verticals."
Investor reaction to the acquisition has been underwhelming thus far. The stock slipped 0.3% last Thursday and then fell 4.1% on Monday even as Wall Street's response to the news has generally been positive.
Source Fool.com
