20, Jun. 2024
Tenex Capital Management Exits Position in SRS Distribution to The Home Depot

New York, NY – June 20, 2024 – Tenex Capital Management (“Tenex”) is pleased to announce the closing of the sale of its ownership stake in SRS Distribution "(“SRS”) to The Home Depot (NYSE: HD) as part of a transaction valued at $18.25 billion.  

Tenex Capital Partners III, L.P. (“Fund III”) received a minority ownership stake in SRS Distribution via the December 2021 sale of Fund III portfolio company AquaCentral to Heritage Pool Supply Group, a division of SRS Distribution. Tenex Fund III rolled a substantial minority portion of its proceeds into SRS Distribution alongside existing shareholders Leonard Green & Partners, Berkshire Partners, and employees.

Following the Home Depot acquisition, the SRS senior leadership team will remain with the company to guide its ambitious growth plans. Dan Tinker, President and CEO of SRS, will continue to lead SRS operations under this new structure, reporting to The Home Depot CEO, Ted Decker.

Tenex Managing Director Gabe Wood commented, “We are very grateful to have been part of the SRS story for the last 2.5 years and want to thank Dan Tinker and the entire SRS leadership team for their unwavering dedication to the business. When we sold AquaCentral to SRS/Heritage Pool Supply Group in December 2021 and became a minority investor in the Company, we knew we were joining forces with a one-of-a-kind, world class organization. The partnership with SRS, Leonard Green, and Berkshire has far exceeded our expectations, and we look forward to tracking the continued success of SRS as part of the Home Depot family.”

The transaction closed on June 18, 2024, funded entirely with cash. Jefferies LLC and Goldman Sachs served as financial advisors to SRS Distribution on this transaction.