The Home Depot made deals to buy two businesses during the second half of 2017, eyeing opportunities for future growth online and in its brick-and-mortar locations.
Now, reports suggest that the home improvement retailer is considering the purchase of XPO Logistics Inc., a delivery company based in Greenwich, Connecticut.
In December, Home Depot announced plans to acquire The Company Store, a Wisconsin bedding and bath company that operates five brick-and-mortar retail locations. The home improvement retailer bought Compact Power Equipment Inc., a national provider of equipment rental and maintenance services, for $265 million in July.
Technology news agency Recode reports that Home Depot is currently mulling how XPO can best be integrated into the home improvement retailer’s e-commerce plans and position it to compete against online rivals, particularly Amazon.
A reason for Home Depot’s push to acquire XPO might be to prevent Amazon from making a purchase offer to the company, according to Recode. XPO specializes in transportation, delivery and other logistical services—services that could help Home Depot bolster its online product offering and order fulfillment services, Recode reports.
XPO’s stock reached a two-year high after news of the possible acquisition broke, Bloomberg says. The company’s stock rose 14 percent to close at $90.01, according to Bloomberg.
Home Depot is headquartered in Atlanta and operates more than 2,200 stores.