Home Depot Inc. announced that its subsidiary, SRS Distribution, will acquire Mingledorff’s, Inc., a wholesale distributor of heating, ventilation and air‑conditioning (HVAC) equipment, parts and supplies. The definitive agreement was signed on March 24, 2026 and is expected to close in the second quarter of fiscal 2026, pending regulatory approvals and customary conditions.
Mingledorff’s operates 42 locations across Alabama, Georgia, South Carolina, Florida and Mississippi and serves both residential and commercial customers. SRS’s existing portfolio already spans roofing, building products, interior construction, landscaping and pool supplies. By adding HVAC to its distribution mix, SRS will broaden its product mix for professional contractors and increase Home Depot’s total addressable market to $1.2 trillion, a move that positions the retailer to capture a larger share of the $100 billion HVAC distribution market.
The transaction will be funded with a combination of cash on hand and debt. Home Depot expects the deal to have no material impact on its target leverage ratio of 2× by the end of fiscal 2027, and the company has indicated that it will maintain its leverage target through the end of the second quarter of fiscal 2027. No deal value was disclosed in the announcement, but the acquisition is part of Home Depot’s broader strategy to consolidate the building‑products distribution landscape and strengthen its Pro‑customer platform.
Management highlighted the strategic fit of the acquisition. Home Depot CEO Ted Decker said 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.” SRS CEO Dan Tinker added that the move “will allow 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.” Mingledorff’s president David Kesterton noted that the company “joins forces with SRS and The Home Depot to broaden our reach and impact.”
The announcement has already influenced the competitive landscape. Watsco Inc., a competitor in the HVAC distribution space, saw its shares fall 9 % following the news, reflecting concerns that Home Depot’s expanded distribution network could erode Watsco’s market share. Analysts view the deal as a significant consolidation move that could reshape the HVAC distribution market and strengthen Home Depot’s position as a one‑stop shop for professional contractors.
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