Home Depot's SRS Distribution to Acquire HVAC Distributor Mingledorff's

The Home Depot is making another aggressive move into the professional contractor market. SRS Distribution Inc., the company's specialty trade distribution subsidiary, announced a definitive agreement to acquire Mingledorff's, Inc., a leading wholesale HVAC distributor headquartered in Peachtree Corners, Georgia. The deal marks SRS's entry into HVAC distribution and will push The Home Depot’s overall addressable market to $1.2 trillion.

Financial terms were not disclosed. The transaction is expected to close during the second quarter of fiscal 2026, subject to customary regulatory approvals, and will be funded through cash on hand and debt.

Founded in 1939 by Walter Lee Mingledorff Jr., a 25-year-old engineering graduate from Savannah, Georgia, Mingledorff's has spent over eight decades building itself into one of the Southeast's most respected HVAC wholesale distributors. After World War II, the company became a direct distributor for Carrier Company and eventually narrowed its focus to wholesale HVAC distribution serving air conditioning contractors and industrial accounts starting in 1958.

Today, Mingledorff's operates 42 locations across five southeastern states — Georgia, Alabama, Florida, Mississippi, and South Carolina — distributing equipment, parts, and supplies from exclusive brand partners including Carrier, Bryant, and Heil. The company serves both residential and commercial professional customers with what the industry has recognized as a best-in-class customer experience.

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 post-acquisition.

This acquisition is not an isolated move — it's the latest chapter in a deliberate, multi-billion-dollar strategy by The Home Depot to become the dominant force in specialty trade distribution for professional contractors.

The timeline tells the story. In March 2024, Home Depot announced its agreement to acquire SRS Distribution for a total enterprise value of approximately $18.25 billion, completing the deal in June 2024. SRS already operated specialty distribution businesses in roofing, building products, landscape, and pool — all verticals that serve the professional contractor. Then in June 2025, Home Depot announced that SRS would acquire GMS Inc., one of the country's leading distributors of drywall, ceilings, and steel framing, for an enterprise value of approximately $5.5 billion. That acquisition was completed in September 2025.

Now, with Mingledorff's, SRS adds yet another vertical — and one that opens the door to the massive HVAC equipment and parts supply chain.

For SRS, the acquisition represents a new frontier. The company has built its model around specialty trade distribution, and it emphasizes how HVAC fits into that broader vision:

The pitch to contractors is straightforward: one distributor, multiple trades, simplified procurement. For builders and general contractors who already source roofing, drywall, and building materials through SRS, having HVAC equipment available through the same network could simplify project logistics and purchasing.

The U.S. HVAC distribution market is projected to grow at a CAGR of 6.3% through 2030, fueled by tightening energy efficiency standards, the ongoing transition to A2L refrigerants, rising heat pump adoption, and persistent demand for both new construction and replacement systems. That growth — combined with the fragmented nature of regional HVAC distribution — makes the sector ripe for the kind of roll-up strategy that SRS has perfected in roofing and building products.

But The Home Depot's entry into this space is a different caliber of competitor. With the resources of a $150+ billion retailer behind it, SRS has the capital and infrastructure to scale HVAC distribution far beyond Mingledorff's current five-state footprint.

For HVAC contractors in the Southeast: In the near term, Mingledorff's leadership team is staying in place, and the company's existing operations — its branch locations, product lines, and brand partnerships with Carrier, Bryant, and Heil — will continue. Contractors who already rely on Mingledorff's for equipment and parts should expect continuity, but should also watch for changes in pricing structures, product availability, and digital ordering tools as SRS integration progresses.

For HVAC contractors outside the Southeast: This is likely just the beginning. Home Depot didn't spend $18.25 billion on SRS and $5.5 billion on GMS to stay regional in any vertical. Mingledorff's 42-location Southeast footprint gives SRS a beachhead, but national expansion is a strong possibility.

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