Home Depot Inc. (HD) subsidiary SRS Distribution Inc. on Monday, Aug. 10, said it’s entered an agreement to acquire Lohmiller & Co., a Denver-based wholesale distributor of heating, ventilation and air conditioning equipment, parts and supplies.

McKinney, Texas-based SRS didn’t disclose financial terms, though The Deal in April reported that Lohmiller, which does business as Carrier West, was exploring a sale. Lohmiller generates about $20 million of Ebitda, with sources saying the company could fetch at least $250 million.

Lohmiller retained Southport, Conn.-based boutique investment bank Carter Morse & Goodrich to conduct talks with third parties, the Deal said.

Founded in 1990, Lohmiller serves residential and commercial customers across Colorado and is owned and operated by Tim Brooks, Mark Brown and Roger Lee. The company distributes a full suite of Carrier Global Corp. (CARR) residential, light commercial and applied HVAC products.

The deal will add a Carrier-aligned HVAC distributor with four locations in Colorado and 220 employees to the Home Depot subsidiary. Brooks, Brown and Lee will continue to lead the business after the transaction, SRS said, providing continuity for customers, suppliers and employees.

SRS CEO Dan Tinker in the statement said Lohmiller will become the second addition to the company’s developing HVAC platform following its recent acquisition of Mingledorff’s Inc., a Southeast HVAC distributor.

SRS emerged as the winning bidder for Mingledorff’s in a deal announced in March, following an auction run by Houlihan Lokey Inc. The Deal reported the process marketed Mingledorff’s on between $80 million and $90 million of Ebitda and reaffirmed private equity’s thesis in the HVAC distribution space.

HVAC distribution has been one of the most active corners of the broader distribution market, supported by stable demand for services and growth tied to data center construction. Dealmakers have said valuations for HVAC distribution assets have increased as private equity demand has risen, with scaled assets able to trade in the mid-teens of Ebitda and smaller assets often fetching 6 to 10 times Ebitda.

SRS was founded in 2008 and distributes building products across North America. The company operates more than 1,300 locations in the U.S. and Canada under a family of local brands.

Home Depot completed its acquisition of SRS in 2024 for about $18.25 billion, including debt. The deal expanded Home Depot’s presence with professional customers and added a major specialty distribution platform across roofing, landscaping and pool products.