SRS Distribution, a subsidiary of The Home Depot and one of the fastest-growing building products distributors in North America, has entered into a definitive agreement to acquire Mingledorff's, Inc., a leading wholesale distributor of heating, ventilation, and air conditioning (HVAC) equipment, parts, and supplies. The acquisition represents a significant strategic move for SRS, marking its entry into the HVAC distribution vertical and further expanding The Home Depot's capabilities for professional customers.
Founded in 1939 and headquartered in Peachtree Corners, Georgia, Mingledorff's is a family-owned business with a long-standing heritage of service to residential and commercial professional customers. The company operates 42 locations across five states in the southeastern U.S., providing contractors with an extensive HVAC product assortment combined with a best-in-class customer experience. Mingledorff's brings a robust distribution network, an expansive product portfolio, and established customer relationships that are highly complementary to SRS's existing business, positioning the company to capture greater share of wallet in the fragmented building materials distribution industry.
With this acquisition, SRS Distribution adds HVAC distribution to its growing portfolio of specialty trade verticals, which already includes roofing and building products, interior and construction products, and landscape and pool. HVAC distribution has a total addressable market of approximately $100 billion and will increase The Home Depot's total addressable market to $1.2 trillion! Speaking about the impact of the acquisition, Ted Decker, chair, president, and CEO of The Home Depot, stated:
"The momentum we've seen in the SRS business is a testament to its strong customer value proposition and execution. SRS is a growth engine for The Home Depot, and we continue to drive significant synergies that enable us to bring more innovation and value to our Pro customers. The addition of Mingledorff's will give us an incredible opportunity to build an enterprise-wide platform in HVAC equipment, replacement parts and supplies, creating another entry point into the broader distribution space."
This transaction marks another key milestone in SRS Distribution's rapid growth since becoming a wholly owned subsidiary of The Home Depot. Through SRS, the company has established a leading position in specialty trade distribution across multiple verticals and continues to build differentiated offerings to better serve Pro customers. Reflecting on the addition of Mingledorff's to the SRS family, Dan Tinker, CEO of SRS, remarked:
"We are thrilled to welcome Mingledorff's to the SRS family, establishing another vertical that allows us to serve new Pro contractors while enhancing our product offering to our existing builder, general contractor and multifamily customers more holistically than ever before. By adding a quality HVAC platform alongside our premier roofing, interior and exterior building materials, landscape and pool businesses, we can offer our customers unmatched product options and streamlined fulfillment—all from a single, trusted distribution partner."
David Kesterton, president and CEO of Mingledorff's, along with his senior leadership team, will continue to lead the company as part of the SRS organization. Commenting on the new chapter for the business, Kesterton said:
"Joining forces with SRS and The Home Depot marks an incredible new chapter in our company's history and gives us a powerful platform to broaden our reach and impact. As a family-owned business with a long-standing heritage of service, we have always prioritized deep partnerships and an unwavering commitment to our customers' success. We're excited to expand our service-first mission while becoming an integral part of the premier destination for Pros in the industry."
SRS Distribution, founded in 2008 and headquartered in McKinney, Texas, currently operates under a family of distinct local brands encompassing more than 1,250 locations across all 50 U.S. states and five Canadian provinces. The Home Depot, the world's largest home improvement specialty retailer, operated 2,359 retail stores and more than 1,250 SRS Distribution locations at the end of fiscal 2025, and employs more than 470,000 associates globally.
The transaction has not closed yet, but is expected to close during the second quarter of fiscal 2026, subject to regulatory approvals and other customary closing conditions. The acquisition will be funded through cash on hand and debt, and is not expected to impact The Home Depot's return to its target 2.0x leverage ratio, which is anticipated by the end of the second quarter of fiscal 2027. Financial terms of the transaction have not been disclosed yet.
BofA Securities served as the exclusive financial advisor and Weil, Gotshal & Manges LLP serve as legal counsel to The Home Depot in connection with the transaction. Houlihan Lokey serves as exclusive financial advisor and Greenberg Traurig LLP serves as legal counsel to Mingledorff's.
The acquisition of Mingledorff's underscores SRS Distribution's commitment to strategic growth and its ongoing efforts, alongside The Home Depot, to consolidate the fragmented building materials distribution industry and deliver enhanced value to professional contractors across the country.
