Territory Manager

Will big-box ownership change HVAC distribution? Contractors weigh in. Contractors see potential benefits in pricing and availability, but worry technical support and relationships could suffer. August 11, 2026 SRS Distribution Inc., a subsidiary of retail giant The Home Depot, recently completed its purchase of Mingledorff's Inc., a distributor of HVAC, plumbing, and electrical equipment and supplies with more than 40 locations across the South. This week, SRS announced plans to acquire Lohmiller & Co., an HVAC distributor with four locations in Colorado. Mingledorff's, founded 87 years ago and based in Georgia, still operates under that name and with its pre-acquisition leadership. Lohmiller, founded in 1990, will retain its top leadership once the deal with SRS is complete. The moves are the latest by a big-box home-improvement retailer to expand into the distribution of materials, equipment, and supplies for trade professionals. Lowe's Companies Inc., which owns Home Depot competitor Lowe's, is also courting trade professionals with recent acquisitions. Home Depot acquired SRS, a distributor of building supplies, in 2024, and has broadcast its plans to grow its share of the professional trades market. "The addition of Mingledorff's represents another key milestone in our strategy to better serve the Pro with the most comprehensive product and service offerings," said Ted Decker, the company's chairman, president, and CEO, in a press release. HVACR professionals have mixed views on big-box retailers' move into distribution and see both opportunities and downsides. While such companies could offer lower prices and better logistics, they say, some of the extras distributors provide - including technical support and training opportunities - may be lost. "We have built strong relationships with local distributors. Those relationships have helped us with training, vendor-managed inventory programs, prebates, rebates, warranty support, and access to products when we need them," said Brandon Stowe, CEO of California-based Crackerjack Air and Plumbing Pros. "That still matters." Looking for quick answers on air conditioning, heating and refrigeration topics? Try Ask ACHR NEWS, its new smart AI search tool. Ask ACHR NEWS But, Stowe said, many distributors have cut back on the support they once provided. "So, if the relationship and technical support are disappearing anyway, then many contractors are going to start asking: What am I really paying extra for?" he said. That dynamic, he added, provides an opening for big-box retailers. Other contractors, like Aaron Adams, CEO of Aaron Services: Plumbing, Heating, Cooling, based in Suwanee, Georgia, held similar views. "Hold times for technical support are already very long, and with a big-box retailer supplying materials and equipment, being able to speak with actual technical support could become a thing of the past," said Adams. Despite their concerns, Adams and Stowe said they would not necessarily view a big-box retailer's acquisition of one of their distributors negatively. "Having such a powerhouse behind the distribution could streamline efficiency, increase equipment availability, and lower costs," Adams said. "Perhaps it could democratize and standardize pricing as well." "I would not automatically be against it," Stowe said. "I would judge it by whether they improve price and access without completely stripping away the support contractors still need." His firm "is already looking at other channels where it makes sense," Stowe said. "We have gone direct to manufacturers where we can, and buying groups are becoming much more accessible. Sometimes the pricing through those channels is significantly better," he said. George "Butch" Welsch, president of Welsch Heating & Cooling Co. in Maryland Heights, Missouri, said if a big-box retailer acquired one of his company's distribution partners, it would have to measure up in terms of accessibility, pricing, and technical support. "HVAC equipment today has gotten much more technical than in the past. As a result, technical support is one of the major criteria we look at when choosing a brand/distributor," Welsch said. Welsch added he doesn't expect a big-box distributor could provide adequate support. "If they can't, and they are our only source of that brand of equipment, we will switch brands," he said. He raised the possibility that distributors owned by big-box retailers would sell directly to consumers, but said that's not something he's concerned about. "As long as our products require proper installation and follow-up, the big-box stores cannot compete with us," Welsch said. "Certainly, they may be able to provide cheaper prices, but our people can outsell that every time." Adams, however, said it "would be a major problem" if big-retailer-backed distributors lobby for direct sales to consumers. "We've seen that in the plumbing industry: Homeowners being able to purchase and install their own water heaters has caused many challenges in that field," Adams said. "Customers see the subpar, non-professional-grade water heaters available in store and question our pricing." Specifically, he said, the reputation of tankless water heaters fell when they became available at big-box stores and were installed improperly by nonprofessionals. However, "big-box retailer involvement could modernize the equipment purchasing experience, lower prices for all, and provide a high level of support in the field," Adams said. "To achieve this, it'll be essential that the retailers continue to protect access to the equipment and invest in local, personal support." Drew Cameron, president of the business development and training firm Flow Odyssey and the software firm Energy Design Systems, and an instructor at the Electric & Gas Industries Association's Contractor University, said the possibility of direct-to-consumer sales should prompt contractors to better educate customers about the contractor's value. "Sadly, manufacturers, distributors, and big-box stores see contractors as the weak link to getting consumer dollars," Cameron said. Contractors need to stress the importance of having locally owned businesses with qualified workers design, install, and maintain equipment to industry standards, he said. Without that knowledge, he added, "customers can be swayed to pursue a course that is not in their best interest just because of the flash and backing of a big-name retailer that truly does not provide the customer with a better guarantee of getting what they want for what they pay." Looking for a reprint of this article? From high-res PDFs to custom plaques, order your copy today! SPONSORED BY Hi there. I'm Ask ACHR NEWS. You can ask me anything about HVACR trends, news, and insights. Go ahead, type something below, and let's get started! Matt Jachman is an editor at the ACHR NEWS. He has 30-plus years of experience in community journalism and a bachelor's degree in English from Wayne State University in Detroit. JOIN TODAY To unlock your recommendations. Already have an account? Sign In

SRS Distribution adds CORCO's commercial roofing division. SRS Distribution's latest bolt-on adds a longtime Chicagoland commercial roofing business, continuing a busy 2026 acquisition pace for the Home Depot-owned distributor. SRS Distribution announced May 29 that it has acquired the commercial roofing business unit of Industrial Cork Company, Inc., a wholesale distributor of commercial roofing and related accessories based in Elmhurst, IL. Financial terms were not disclosed. Founded in 1935, Industrial Cork - also known as CORCO - is operated by Jeff DeJong and Dan Krasinski. DeJong will continue to lead the commercial roofing business under the SRS brand banner, while CORCO will continue operating its controlled environment building construction unit under Krasinski's leadership. That unit was excluded from the transaction and will relocate to a new location, SRS said. "We are absolutely thrilled to welcome the CORCO roofing team to the SRS family," SRS President Kent Gardner said in the announcement. "Jeff, Dan, and the entire organization have built an excellent reputation as a commercial roofing leader in the Chicago market." The deal marks SRS' latest bolt-on acquisition amid a busy expansion stretch in 2026. Earlier this month, SRS completed its acquisition of Mingledorff's - a Peachtree Corners, GA-based HVAC distributor with 42 locations across five southeastern states. That deal added HVAC distribution as a new SRS vertical. SRS also announced a pair of April deals through its Heritage Landscape Supply Group platform in Chicago and St. Louis, and it announced three acquisitions in February, including LS Building Products in central Illinois and additional transactions in New York and Nebraska. The acquisition activity has extended to GMS, which became a direct subsidiary of SRS and an indirect, wholly owned subsidiary of The Home Depot in September 2025 after Home Depot completed its approximately $5.5 billion acquisition of the specialty building products distributor through SRS. GMS' 2026 activity has included its Canada unit's acquisition of Peridot Supply, announced this week, along with earlier deals for Above Interior Distributors and Frontier Drywall Supply. SRS has long been one of distribution's most active acquirers, and that pace has continued under The Home Depot, which acquired SRS for approximately $18.25 billion in June 2024. Recommended Reading

SRS Distribution to make HVAC splash, acquire Mingledorff's. Set to complete by mid-year, it represents a new product vertical for building materials-oriented SRS, netting it 42 locations across the Southeast U.S. As it approaches the two-year mark since its $18 billion purchase by The Home Depot, SRS Distribution has inked a major deal of its own, and one that represents a new product vertical endeavor. SRS announced March 24 that it reached an agreement to acquire Mingledorff's - a wholesale distributor of HVAC equipment, parts and supplies to residential and commercial contractors and industrial accounts. Founded in 1939, family-owned and based in Peachtree Corners, GA, Mingledorff's has 42 distribution locations across Georgia, Alabama, South Carolina, Florida and Mississippi. It's a key distributor of Carrier and Bryant HVAC equipment, and has subsidiaries Holden & Associates (acquired in 1999) and Commercial Controls Group, Inc. Terms weren't disclosed for the pending deal, which is expected to complete by the end of 2026's second quarter and be funded with cash on hand and debt. The Home Depot said it doesn't expect the acquisition to impact the return to its target 2.0x leverage ratio. What stands out about the move is the product category. McKinney, TX-based SRS has long been aligned with traditional building materials verticals - with business pillars around roofing, building products of siding, windows & doors - landscape & pool supply via Heritage Landscape Supply (formed in 2019), and solar solutions. In a news release, SRS noted that Mingledorff's brings an extensive product portfolio, robust distribution network and established customer relationships that are highly complementary to SRS' existing business, positioning the company to win a greater share of wallet in the fragmented building materials space. It pegs the HVAC distribution total addressable market at $100 billion and notes that the deal will push HD's TAM to $1.2 trillion. "The momentum we've seen in the SRS business is a testament to its strong customer value proposition and execution," said Ted Decker, HD's Chairman, President and CEO. "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. 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 has approximately 1,250 locations - a significant increase from the 750 it has at the time it was acquired in mid-2024. HD has since acquired Gypsum Management & Supply this past September for $5.5 billion and tucked it into SRS. HD hasn't broken out revenue details for SRS since, but its 2025 revenue likely was in the range of $16 billion to $18 billion when factoring in GMS' full-year addition. "We are thrilled to welcome Mingledorff's to the SRS family, establishing another vertical that allows 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," added Dan Tinker, CEO of SRS. "By adding a quality HVAC platform alongside our premier roofing, interior and exterior building materials, landscape and pool businesses, we can offer our customers unmatched product options and streamlined fulfillment - all from a single, trusted distribution partner." Mingledorff's President and CEO David Kesterton and his senior leadership team will continue to lead the company as part of the SRS organization. "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. "As a family-owned business with a long-standing heritage of service, we have always prioritized deep partnerships and an unwavering commitment to our customers' success. We're excited to expand our service-first mission while becoming an integral part of the premier destination for pros in the industry." For Home Depot, BofA Securities is serving as financial advisor and Weil, Gotshal & Manges is serving as legal counsel, while Houlihan Lokey is serving as financial advisor to Mingledorr's alongside Greenberg Traurig as legal counsel. Prior to the Mingledorff's announcement, SRS had made 2026 tuck-in acquisitions of Sider Lumber & Supply (Nesconset, NY), Outdoor Solutions (Lincoln, NE) and LS Building Products (East Peoria, IL) - each announced in late February. The LS deal was the biggest of them, netting SRS four distribution locations, three production facilities and over 220 employees. Mike Hockett is MDM's executive editor, having joined the publication in March 2022. He oversees MDM's editorial content and direction, coordinates with contributing authors, conducts interviews with executives in the wholesale distribution space and serves as the editorial face of MDM at industry events. He has extensively covered the distribution and manufacturing sectors since 2014. Hockett works from his home in Madison, WI. He can be contacted at [email protected]. Recommended Reading