Home Depot has entered into an agreement to purchase the parent company of Heritage Pool Supply Group for $18.25 billion.

Under the terms of the agreement, the parent company — SRS Distribution — will operate as an independent business unit within The Home Depot, focused on accelerating growth in the professional market.

Over the past 16 years, the SRS family has become one of the fastest-growing building products distributors in the United States.

“This proposed transaction will bring together the talent, technology, and capabilities of SRS with The Home Depot’s trusted name and robust platform, expanding SRS’ reach into numerous new product categories and customers,” SRS reported in a press release.

For the Home Depot, the acquisition will help to better serve professional customers. “The acquisition will clear a pathway for accelerated growth with the residential and commercial professional customer by expanding The Home Depot’s Pro capabilities, combining online, retail, and wholesale,” the press release stated.

The combined platform will open new opportunities for existing suppliers and partners by providing access to SRS’ workforce, 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 growth plans.

Dan Tinker, President and CEO of SRS, said they are proud to be combining with The Home Depot to continue their journey with additional resources and capabilities.

“We set out to find the optimal strategic outcome for the business, and we strongly believe we have achieved just that,” Tinker said. “With this combination, the future has never been brighter for our supplier partners, our Pro customers, and our team.”

Ted Decker, Chair, President, and CEO of The Home Depot, said SRS has shown its ability to build leadership positions while generating significant revenue growth.

“SRS’ branch network, coupled with The Home Depot’s 2,000+ U.S. stores and distribution centers and comprehensive product offering, provides the residential and commercial Pro customer with more fulfillment and service options than ever before,” Decker said.

The transaction is expected to close by the end of fiscal 2024 and is subject to regulatory approvals and other customary closing conditions.

Founded in 2008 and headquartered in McKinney, Texas, SRS Distribution has grown to become one of the fastest-growing building products distributors in the United States. Entering the industry in 2021, Heritage Pool Supply is SRS’s newest distribution company. Via key acquisitions, Heritage has become the second largest pool supply distributor in the U.S.