Leonard Green & Partners Achieves Historic Exit with SRS Sale
Deal News | Mar 03, 2025 | Leonard Green and Partners
Leonard Green & Partners (LGP), a private equity firm based in Los Angeles, has been awarded PE Hub’s Overall Deal of the Year Award for their $18.25 billion sale of SRS Distribution to The Home Depot. This transaction marks the fourth-largest private equity exit in U.S. history. The firm, which held SRS for six years, significantly grew the company, establishing it as a leading player in roofing, pool, and landscape distribution markets. Originally intending to exit via an IPO, LGP eventually chose the all-cash offer from The Home Depot, finalized in June 2024. The deal was underpinned by strategic enhancements to SRS, including substantial acquisitions such as AquaCentral and Imperial Sprinkler Supply, leading to major revenue and EBITDA growth. In addition, LGP's strategy included tech investments, workforce optimization, and operational expansion. Investment strategy empowered broad employee ownership, with SRS employees receiving approximately $3.5 billion in proceeds. LGP's successful exit strategy and employee-ownership model highlight its effective investment approach.
Sectors
- Private Equity
- Building Materials Distribution
- Home Improvement Retail
Geography
- United States – The entire transaction, as well as the involved companies like Leonard Green & Partners, SRS Distribution, and Home Depot, are based in the United States, making this geography highly relevant.
- California – SRS Distribution expanded its footprint in California significantly through acquisitions like Imperial Sprinkler Supply, relating this geography to the article.
Industry
- Private Equity – The article involves a transaction executed by Leonard Green & Partners, which is a significant act within the private equity industry due to the nature of the sale and its historical value.
- Building Materials Distribution – SRS Distribution operates within the building materials sector, specializing in distributing roofing, pool, and landscape materials, making this industry relevant to the article.
- Home Improvement Retail – The Home Depot, a major player in the home improvement retail sector, acquired SRS, linking this industry to the article's content.
Financials
- $18.25 billion – The enterprise value of SRS Distribution at the time of sale to The Home Depot.
- $3.5 billion – The collective gross cash proceeds shared with SRS employees upon exit.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Leonard Green & Partners | Selling Company | Company | Leonard Green & Partners is the private equity firm that sold SRS Distribution to The Home Depot. |
| SRS Distribution | Target Company | Company | SRS Distribution is the company being sold, a leading distributor of roofing materials and building products. |
| The Home Depot | Bidding Company | Company | The Home Depot is the buying company acquiring SRS Distribution. |
| Berkshire Partners | Previous Owner | Company | Berkshire Partners was the previous owner of SRS prior to Leonard Green & Partners holding. |
| Barclays | Corporate Finance Advisor | Company | Barclays led the sale process when SRS was initially sold to Leonard Green & Partners in 2017. |
| John Danhakl | Managing Partner | Person | John Danhakl is a managing partner at Leonard Green & Partners, involved in overseeing the SRS transaction. |
| Jonathan Seiffer | Senior Partner | Person | Jonathan Seiffer is a senior partner at Leonard Green & Partners and provided insights on the growth prospects of the industry. |