The Home Depot announced Tuesday that its SRS Distribution subsidiary has reached an agreement to acquire a Georgia HVAC distributor — a move that officials said expands the building products distributor into a new vertical.
The addition of Mingledorff's Inc., Home Depot officials said, would add HVAC supplies and equipment to SRS’ current lineup of roofing and building products, interior and construction products, and landscape and pool supplies.
The deal, officials noted, would also bring a $100 billion HVAC distribution segment to Home Depot’s overall operations — and expand the home improvement retail titan’s total addressable market to $1.2 trillion.
The company expects to complete the acquisition in the second quarter of the year, subject to regulatory approval and other closing conditions. Financial terms were not disclosed.
"The momentum we've seen in the SRS business is a testament to its strong customer value proposition and execution," Home Depot President and CEO Ted Decker said in the announcement. “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.”
Mingledorff's President and CEO David Kesterton and the rest of the company’s leadership staff will continue to lead the business as part of SRS. Mingledorff's operates 42 locations across five states in the Southeast.
"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," Kesterton said.
