The Home Depot has entered into a definitive agreement to acquire SRS Distribution Inc., a residential building products distributor headquartered in McKinney, Texas. It largely serves the roofing industry, but also sells products for landscapers and pool contractors. SRS has 760 branches across 47 states and a sales force of more than 2,500, together with its 4,000-plus truck fleet and jobsite delivery capabilities.

Under the terms of the agreement, a subsidiary of The Home Depot will acquire SRS for a total enterprise value (including net debt) of approximately $18.25 billion, making this the biggest acquisition the retailer has made to date.

According to a release, “SRS will accelerate The Home Depot’s growth with the residential professional customer. SRS complements The Home Depot's capabilities and will enable the company to better serve complex project purchase occasions with the renovator/remodeler, while also establishing The Home Depot as a leading specialty trade distributor across multiple verticals.”

The deal adds to Home Depot’s portfolio of integrated companies as it works to build a vertical business service network, particularly into the contractor and builder markets. These are considered key growth areas for the company. Although pros account for only 10 percent of its customers, their spend totals 50 percent of the retailer’s total sales. And coming out of Covid, pros’ expenditures have increased faster than DIY dollars.

Home Depot has been making acquisitions since its founding, most of them to round out its services and products for pros. The first was Maintenance Warehouse, a direct mail marketer of maintenance supplies. Home Depot bought it in 1997 for $245 million. Apex Supply, another industrial supplier, was added two years later. In 2004, both these businesses were incorporated as Home Depot Supply.

By 2007, this division was rebranded HD Supply. But only months after the rebranding, it was sold off, at the insistence of shareholders, under the direction of then-CEO Bob Nardelli. Private equity companies led by Bain Capital acquired it for about $8.5 billion. Ironically, as Home Depot continued to expand its vertical reach with acquisitions, the value of the HD Supply business made sense again, and Home Depot bought back the company at the end of 2020 to better serve its growing MRO customer.

Hughes Supply, a large home retail company, represented another large acquisition in 2006 for Home Depot. That deal was worth $3.5 billion. A decade later, Interline Brands, a wholesale MRO chain, was bought up for $1.6 billion.

Home Depot had started a tool rentals division internally back in 1995, but in 2017 the retailer added Compact Power Equipment Inc., an equipment rental and maintenance services business, for $265 million. Most recently, International Designs Group, a distributor of stone and porcelain tile, was added to Home Depot’s portfolio in 2023.

Of course, for Canadians, one of Home Depot’s earliest acquisitions was its most impactful for this market. In 1994, it bought the Aikenhead’s chain from Molson Cos. and made its entry into Canada. The deal, which gave Home Depot a 75 percent share of Aikenhead’s, was worth $150 million. Four years later, Home Depot bought up the remaining 25 percent for $375 million, making Home Depot Canada a wholly-owned subsidiary.

The National Hardware Show was held March 26 to 28 at the Las Vegas Convention Center and the event managed to draw its share of Canadians. Most of them were vendors and agents, including AGT Products, Alliance Consumer Group, Jacobs & Thompson, and Peninsula Plastics. Legacy brands like Robertson Inc. (maker of the Robertson screwdriver), as well as Imperial, Olfa, and Kidde, were also on hand.

Finding key buyers at the show was more difficult. Alexandre Lefebvre, CEO of BMR Group, was at the show, and brought with him a delegation of that group’s lead merchants. But the other majors, including RONA and Home Depot Canada, were notable by their absence from the show floor. However, Home Hardware has been encouraging its own dealer-members to attend the show in recent years, and a group of that banner’s dealers was there again this year.

Despite a limited showing from Canada, the show remains an important forum for networking and building new business. “The vibe was really positive,” says Joelle Cohn, VIP attendee manager for NHS. “The exhibition hall was sold out and we started selling already for 2025. A lot of people were excited about all the new offerings, and the experiences we created for socializing and networking were appreciated by attendees. The chance for relationship building was crucial, as human interaction is so important in building businesses.”

Canadian vendors were showing off new lines and attracting attention, with about 40 Canadian firms exhibiting. New-Line Hoses is looking to expand beyond the commercial markets it currently serves with retail lines. The Surrey, B.C.-based company’s products includes fittings, coupling and adapters, as well as hoses for homeowners that feature specs suitable for industrial applications.

Multinautic was featuring modular aluminum dock kits, with all products needed in one kit. This manufacturer, based in Saint-Sauveur, Que., sells everything but the lumber for the project, including matching accessories—and even flower baskets.

The show was rounded out by various activities and learning sessions. New to NHS for 2024, the Independent Retail Center featured Retailer Roundtables and Ask the Expert sessions. The next National Hardware Show will be held at the Las Vegas Convention Center from March 18 to 20, 2025.

To celebrate National Woodworking Month, Lee Valley Tools has a new campaign under the company's evergreen brand series, Making Happiness. Throughout the month of April, the specialty tool and woodworking retailer is hosting in-store events and interactive workshops, while releasing original content intended to inspire the Lee Valley community of woodworkers, hobbyists, and garden enthusiasts to immerse themselves in their craft.

“April is National Woodworking Month, the perfect time to learn a new skill or embark on a new project,” says Jason Tasse, president and COO of Lee Valley Tools. “Our dynamic programming speaks to both the experienced woodworker and the younger generation of aspiring crafts people, encouraging them to embrace woodworking and learn a new skill that involves more than just their two thumbs.”

Tasse calls woodworking “a core line of business” for Lee Valley Tools. The Making Happiness campaign is a perennial series for Lee Valley Tools and is centered around highlighting the essence of the Lee Valley brand to both novice hobbyists and experienced craftspeople. The content in the new campaign aims to illustrate how the journey of creating with one’s own hands can lead to a sense of accomplishment. The content will showcase customers’ intrinsic appreciation for craftsmanship.

Lee Valley Tools launched the latest campaign last week with a series of online and in-store activations, including power tool demos over two days at its stores. In addition, the events featured giveaways, contests, plus Lee Valley’s team of sales advisors to help customers. The company is also hosting drop-ins, demos, and workshops throughout the month.

(Jason Tasse, President and COO of Lee Valley Tools, will be a keynote speaker at this year’s Hardlines Conference. The 2024 Hardlines Conference Series is taking place Oct. 22 to 23 at the Fairmont Le Manoir Richelieu, in Charlevoix, Que., in collaboration with AQMAT. Click here for more info!)

The “original local hardware store” has mounted an extensive ad campaign. True Value, the banner displayed by some 4,500 stores in the U.S. and worldwide, has launched “Hardware Hero,” with creative from its agency of record, Laughlin Constable. The campaign is based on a song from the British-American rock band Foreigner, which had a 1981 hit with “Juke Box Hero.”

True Value has been absent from the Canadian hardware landscape since 2012, two years after TruServ Canada Inc. was acquired by RONA. But it has remained one of hardware’s iconic banners south of the border. Nevertheless, True Value said in a release that it recognized that “independent businesses have been navigating a changing retail environment.” The executives in Chicago decided that the hardware banner could benefit from its first national ad campaign in 10 years.

“With 75 years under our tool belt, we knew we needed to continue our evolution and create a campaign that would resonate with not only our independent retailers, who are heroes in their own right, but also our customers,” said Jake Kalnitz, SVP and chief merchandising officer for True Value. “I love this campaign because it’s relatable, refreshing, and straight up fun. It’s different than anything else in the industry.”

Hardware Hero is a geo-targeted campaign designed “to connect consumers with hyper-local” True Value hardware stores. The 15- and 30-second spots will run on TV, YouTube pre-roll, Meta, and programmatic display.

Donna Gerrits, vice-president of sales and marketing at Alexandria Moulding, is retiring. A 40-year veteran of the industry, Gerrits was a co-owner and the general manager of Royal Woodworking until it was acquired in 2012 by Alexandria Moulding. In 2016, she joined Alexandria Moulding in the sales and marketing position. Alexandria Moulding was acquired two years later by Specialty Building Products. Now, Dave Stojni has joined Specialty Building Products as vice-president of sales for Canada. He was formerly with Doman Building Materials Group as general manager, Ontario. Gerrits will remain for several months to work alongside Stojni to facilitate a smooth transition of her responsibilities.

At Suncast Corp., a maker of consumer and commercial products for the home and industrial markets, Chris Whitall has been appointed national sales manager, Canada. He will be working with the major big box, hardware, home improvement, and lawn and garden accounts in Canada, supported by the Canadian sales agency groups that work with Suncast. Whitall previously held senior sales and account manager positions in Canada with Weber, Bosch, and Stanley.

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RETAILER NEWS

Castle Building Centres held its annual general meeting last week at the JW Marriott hotel in Summerland, outside Las Vegas. The event attracted the buying group’s top vendors and dealer-members from across Canada.

A store in Lacombe, Alta., just north of Red Deer, has opened an imaginative shopping area on its upper mezzanine called “The Loft.” In this new retail showroom, Nowco Home Hardware features home accessories and home products including décor, scents, sprays, candles, and soft furnishings. The third-generation owners of the store are Deanna and Tyler Nowochin, who won the Marc Robichaud Award for Community Leadership at last year’s Outstanding Retailer Awards.

To kick off Earth Month, IKEA Canada has launched a “Second-Hand Tax,” an initiative in all IKEA As-is marketplaces across Ontario. It’s another effort by the giant retailer to help Canadians cope with the rising costs of living and promote sustainability. Ontario IKEA stores will feature the Second-Hand Tax, a deduction of 13 percent on the sale price of its re-used products, to match Ontario’s 13 percent HST. The promotion runs from April 2 to 11, 2024 and is available to IKEA Family cardholders. The retailer hopes to make “shopping circular” more attractive and acceptable to Canadians.

The Home Depot has rebranded its online marketplace, Retail Media+, with a new name: Orange Apron Media. The site, which was launched in 2018, hosts vendors of all types, not just those that sell products in Home Depot stores, and claims to have 1.76 billion transactions a year. According to the Orange Apron website, its mission is to “create the best interconnected experience for your brand and the customers we serve.”

Local delivery service DoorDash says it’s partnered with Lowe’s Cos. to offer on-demand delivery from over 1,700 stores in the U.S. This partnership marks DoorDash’s first foray into the home improvement category. Lowe’s products can now be purchased directly on the DoorDash app, helping consumers easily shop for items they need delivered same-day. All participating Lowe’s stores will also be available on DashPass.

Books and lifestyle retailer Indigo Books & Music Inc. has agreed to a deal to sell the majority of its shares to Trilogy Investments L.P. and Trilogy Retail Holdings Inc., taking the company private. TILP will acquire all outstanding common shares of Indigo for $2.50 in cash per share, which represents an increase from the original offer of $2.25. TILP already owns about 60.6 percent of Indigo. The Trilogy companies are controlled by Gerald Schwartz, the husband of Indigo CEO Heather Reisman and CEO of Onex Corp.

Saint-Gobain has announced that its building materials subsidiary CertainTeed Canada will acquire The Bailey Group of Companies. The Vaughan, Ont.-based manufacturer of commercial metal framing and building products was founded in 1950. A family-owned company with almost 700 employees at locations in multiple provinces, it consists of Bailey-Hunt Ltd. and its subsidiaries, including Bailey Metal Products. Under the agreement, Saint-Gobain will also complete the purchase of the remaining equity and assets of The Grid Company, its ceiling grid manufacturing joint venture with Bailey.

Western Forest Products has closed a previously announced deal with four of the six member nations of the Na̲nwak̲olas Council. These four First Nations will acquire a 34 percent interest from Western in a newly formed limited partnership. The partnership consists of certain assets and liabilities of Western’s Mid Island Forest Operation, in a transaction valued at $35.9 million. The parties also announced the new name for the partnership: La-kwa sa muqw Forestry (pronounced la-KWAH-sa-mook). The name means “the wood of four” in the Kwak’wala language.

West Fraser Timber Co. and Mercer International Inc. have announced an agreement to dissolve their 50/50 joint venture in Cariboo Pulp and Paper. West Fraser will continue as the sole owner and operator of the mill, doing business as Cariboo Pulp and Paper Co. Located in Quesnel, B.C., Cariboo has the capacity to produce up to 340,000 tonnes of Northern Bleached Softwood Kraft pulp annually. It employs nearly 300 people.

Retail human resource professionals navigate a complex and changing landscape. Understanding and addressing employee needs has become more crucial than ever for cultivating vibrant workplace environments and cultures. Retail Council of Canada (RCC) will host the Retail Human Resources Conference on April 25 at the International Centre in Mississauga, Ont. It will feature a packed agenda with distinguished speakers, offering a pivotal gathering for retail HR professionals that will explore the pressing issues shaping the future of retail HR. Click here to learn more and register.