The private equity firm Leonard Green & Partners (LGP) will buy a majority stake in SRS Distribution, the nation’s ninth-biggest pro-oriented construction supply dealer, CEO Dan Tinker confirmed to ProSales today.
Tinker said the deal with LGP is expected to close by early June. Current majority owner Berkshire Partners will retain a stake, as will SRS managers, he said. Tinker declined to comment on a Reuters report that the deal is worth $3 billion, including the assumption of debt.
Founded in 2008, McKinney, Texas-based SRS is one of the nation’s fastest-growing construction supply companies, adding 30 locations in 2017 alone. The roofing specialist’s sales rose 20% last year to $2.31 billion, with 99% of those sales going to pros. SRS now has more than 200 locations in 41 states operating under the names of nearly two dozen subsidiaries.
LGP’s website says that the firm, headquartered in Los Angeles, has invested in more than 90 companies since it started business in 2009. Its current portfolio includes BJ’s Wholesale, Aspen Dental, J. Crew, David’s Bridal, The Container Store, and Tire Rack.
