SRS Distribution Inc., a subsidiary of The Home Depot, 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, serving residential and commercial customers through 42 locations in five states across the southeastern U.S.

The Home Depot is building differentiated offerings and capabilities to better serve Pro customers. Through its subsidiary SRS, the company has also established a leading position in specialty trade distribution across multiple verticals including roofing and building products, interior and construction products, landscape and pool. SRS's acquisition of Mingledorff's adds HVAC distribution as a new vertical.

Mingledorff's brings an extensive product portfolio, robust distribution network and established customer relationships that are highly complementary to SRS's existing business, positioning the company to win greater share of wallet in the fragmented building materials distribution industry.  HVAC distribution represents a total addressable market of approximately $100 billion and will increase The Home Depot's total addressable market to $1.2 trillion.

"The momentum we've seen in the SRS business is a testament to its strong customer value proposition and execution," said Ted Decker, chair, president and CEO of The Home Depot. "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."

"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," said Dan Tinker, CEO of SRS. "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."

"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," said David Kesterton, president and CEO of Mingledorff's. "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."

Kesterton, as well as his senior leadership team, will continue to lead Mingledorff's as part of the SRS organization.

Transaction Terms

The closing of the acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to be completed during the second quarter of fiscal 2026. The transaction is expected to be funded through cash on hand and debt. The company does not expect this acquisition to impact the return to its target 2.0x leverage ratio, which is anticipated to occur by the end of the second quarter of fiscal 2027. Financial terms of the transaction were not disclosed.

Advisors

BofA Securities served as the exclusive financial advisor and Weil, Gotshal & Manges LLP served as legal counsel to The Home Depot in connection with the transaction. Houlihan Lokey served as exclusive financial advisor and Greenberg Traurig LLP served as legal counsel to Mingledorff's.