The Home Depot, for its part, has more than 2,300 stores and 1,250 SRS locations, and reported fiscal 2025 revenue, from all companies it owns, of about $164.7 billion. 

“This is a big deal,” said David Holt, general manager of HVAC Distributor University and Contractor University, which are both part of the Electric & Gas Industries Association (EGIA). “They are distribution wizards and will bring that expertise more into their pro dealer base.” 

Home Depot, which acquired SRS in 2024, is reaching for a larger share of the market for materials, equipment, and supplies for trades workers. 

“Home Depot has consistently outlined their intent to ramp up wholesale-esque operations to better serve their residential pro customers,” said Grace Helser, a research analyst at Heating, Air-conditioning & Refrigeration Distributors International (HARDI). In addition to SRS, Helser noted, Home Depot has also purchased GMS Inc., a building supplies distributor, as part of its announced growth strategy. 

Holt said Home Depot will get a “flagship platform” with the purchase of Mingledorff’s, and will likely look for more suppliers to acquire. 

Mingledorff’s, Holt said, was the primary distributor for the HVAC contracting business started by his grandfather in 1956, and two members of his extended family worked for the distributor. “To say Mingledorff’s played a pivotal part of the Holt family HVAC career would be a huge understatement,” he said. 

Should the Mingledorff’s purchase be completed, Helser said, traditional distributors can expect some disruption in the market, including increasing competition for some time-sensitive and high-frequency purchases, more customer emphasis on fulfillment speed and reliability, greater pressure to expand into products needed in other trades, and an increase in the importance of using digital tools. 

“Contractors are increasingly using digital tools for product identification, pricing transparency, order management, and project planning,” Helser said. “Distributors that lag in digital capability risk becoming less integrated into contractor workflows, regardless of relationship strength.” 

Holt said Home Depot, like all retailers, is transaction-oriented, whereas HVAC distribution is traditionally relationship-oriented. 

“This difference will really impact how HVAC contractors engage with their suppliers if the territory managers get squeezed out of existence in this move,” he said. “I’d hate to see that, because the great TMs in my past have been a very important part of our success.” 

Home Depot’s competitors will “absolutely” try to get in on HVAC distribution, Helser said. 

Lowe’s, the second-largest home-improvement retailer in the U.S. by sales, has made moves similar to Home Depot’s, including putting more emphasis on serving trades customers, expanding digital capabilities, and adding companies, Helser said. Lowe’s Companies Inc. recently purchased Artisan Design Group, which provides builders and property managers with design, distribution, and installation services for interior finishes, and Foundation Building Materials, a distributor of interior building products. 

“I imagine that they will be watching closely,” Holt said of Lowe’s, “but there are only so many big fish like Mingledorff’s out there, so it will be interesting to see how this goes.” 

SRS Distribution’s purchase of Mingledorff’s is expected to be funded by cash on hand and debt and completed during the current quarter. Once the deal is completed, David Kesterton, Mingledorff’s president and CEO, and his leadership team will continue to lead the company as part of SRS.