SRS Distribution to Acquire Mingledorff’s, Expanding HVAC Business for The Home Depot

SRS Distribution Acquires Mingledorff’s: A Leap into HVAC

In a significant strategic move, SRS Distribution Inc., a subsidiary of The Home Depot®, has confirmed its decision to acquire Mingledorff’s, Inc., a prominent name in the wholesale HVAC distribution sector. This acquisition not only strengthens SRS's foothold in the heating, ventilation, and air conditioning (HVAC) market but also amplifies The Home Depot's overall market presence, raising its total addressable market to an impressive $1.2 trillion.

A Strategic Growth Move

The acquisition of Mingledorff’s marks a pivotal extension of SRS's existing distribution capabilities. Operating out of 42 locations, Mingledorff’s has built a robust distribution network that serves both residential and commercial customers across five southeastern states. The company’s wide-ranging product portfolio and well-established customer relationships align seamlessly with SRS’s existing services in specialty trade distribution, which already includes roofing, construction products, and landscape supplies.

Ted Decker, Chair, President, and CEO of The Home Depot, emphasized the strategic significance of this acquisition. He noted that it underscores SRS's role as a growth engine for The Home Depot, enabling the company to provide enhanced value and innovation to its professional customer base. Decker stated, “The addition of Mingledorff's will give us an incredible opportunity to build an enterprise-wide platform in HVAC equipment, replacement parts, and supplies.” This sentiment reflects the company's commitment to expanding its offerings and improving customer service across various sectors.

Enhancing Service Offerings

Mingledorff's brings with it an extensive selection of HVAC products along with a commitment to high-quality customer service, which aligns perfectly with SRS's mission. Dan Tinker, CEO of SRS, expressed enthusiasm for integrating Mingledorff’s into the SRS family. Tinker remarked, “This acquisition will allow us to better service new Pro contractors and enhance our offerings to existing customers.” By merging Mingledorff’s HVAC capabilities with its own, SRS is set to provide unparalleled product options and fulfillment efficiencies from a singular distribution source.

This merger aims to capitalize on the growing need for reliable HVAC solutions, which, as noted, represents a substantial market value of approximately $100 billion.

A New Chapter for Mingledorff’s

For Mingledorff’s, this acquisition is described as a transformative chapter in its history. David Kesterton, President and CEO of Mingledorff’s, expressed excitement about the merger: “Joining forces with SRS and The Home Depot marks an incredible new chapter in our company's history.” The family-owned business has a legacy of prioritizing customer service and deep partnerships, and this acquisition provides a powerful platform to expand its commitment to those values.

Kesterton and his senior leadership team are set to remain in place, guiding Mingledorff’s within the SRS organization and ensuring continuity of service and operational excellence.

Transaction Details and Future Prospects

The finalization of this acquisition is contingent upon customary conditions, including regulatory approvals, with expectations for completion in the second quarter of fiscal 2026. The transaction will be funded through existing cash reserves and debts, with no anticipated impact on The Home Depot's leverage ratios.

BofA Securities and Weil, Gotshal & Manges LLP served as advisors to The Home Depot, while Houlihan Lokey and Greenberg Traurig LLP assisted Mingledorff's in this groundbreaking transaction.

A Broadened Horizon for The Home Depot

As the largest home improvement retailer globally, The Home Depot continues to innovate and expand, currently operating more than 2,359 retail stores alongside over 1,250 locations for SRS across the U.S. and in Canada. The integration of HVAC distribution through this acquisition is expected to enhance The Home Depot's ability to serve contractors and commercial customers alike, fostering deeper relationships and improved service delivery in the industry.

As SRS Distribution welcomes Mingledorff’s to its ranks, the future looks promising for both companies as they strive to redefine their market presence and customer engagement within the HVAC sector.