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The Home Depot has announced an agreement to purchase Compact Power Equipment Inc., a national provider of equipment rental and maintenance services, for $265 million in cash.
The transaction, which Home Depot confirmed July 6, is expected to close by the end of Home Depot’s second quarter, according to the company.
The deal follows competitor Lowe’s May announcement that it was purchasing Texas distributor Maintenance Supply Headquarters for $512 million, a move intended to grow its pro customer base.
Compact Power Equipment is a South Carolina-based company that currently provides equipment rentals at more than 1,000 Home Depot stores across the U.S. and Canada.
“We’ve worked closely with the talented team at Compact Power Equipment for many years and are delighted to welcome them to The Home Depot family,” says Craig Menear, chairman, CEO and president.
“The acquisition allows us to further improve the customer experience—in particular for pros—through enhanced equipment and tool rental offerings. It also allows us to grow Compact Power’s best-in-class building services capabilities.”
Compact Power Equipment has worked with Home Depot since 2009, and in addition to tool rental, provides equipment maintenance services to a range of customers.
“With a collective focus on convenience and execution, together our companies will be even stronger to serve customers while remaining on the cutting edge of lifecycle management for commercial equipment,” says Compact Power CEO Roger Braswell.
Home Depot is the world’s largest home improvement retailer, with 2,281 retail stores in the U.S., Puerto Rico, U.S. Virgin Islands, Guam, Canada and Mexico. In fiscal 2016, The Home Depot had sales of $94.6 billion and earnings of $8 billion.
