Home Depot Inc (NYSE:HD, XETRA:HDI) said on Tuesday its subsidiary SRS Distribution has agreed to acquire Mingledorff’s, a southeastern US distributor of heating, ventilation and air conditioning (HVAC) equipment, as the retailer expands its push to serve professional contractors.
Mingledorff’s, founded in 1939 and headquartered in Georgia, operates 42 locations across five states and supplies HVAC equipment, parts and supplies to residential and commercial customers.
The acquisition will add HVAC distribution as a new vertical within SRS, which already operates in roofing, building products, interior construction, landscaping and pool supplies.
“The addition of Mingledorff's will give us an incredible opportunity to build an enterprise-wide platform in HVAC equipment, replacement parts and supplies,” Home Depot CEO Ted Decker said in a statement.
Analysts at Jefferies Financial Group said the deal expands Home Depot’s total addressable market by about $100 billion and strengthens its positioning in the HVAC distribution space, which they estimate at roughly a $100 billion market.
The brokerage noted the acquisition supports the company’s broader strategy to consolidate the fragmented building materials distribution industry and enhance long-term earnings potential.
Home Depot said the transaction will be funded with cash on hand and debt and is not expected to affect its timeline to return to a target leverage ratio of 2x by the end of fiscal 2027.
Financial terms of the deal were not disclosed. The transaction is expected to close in the second quarter of fiscal 2026, subject to regulatory approvals and other customary conditions.