The Home Depot (NYSE: HD) has agreed to acquire Compact Power Equipment Inc, a Fort Mill, South Carolina-based provider of equipment rental and maintenance services, for US$265 million in cash. The seller in the deal is Canadian private equity firm Kilmer Capital Partners. Kilmer partnered with another Canadian investor to acquire a majority interest in Compact Power in 2012. It also helped the company raise US$50 million in asset-based financing to support growth. Home Depot, a U.S. home improvement specialty retailer, said the acquisition will enhance its equipment and tool rental offerings.
The Home Depot Agrees to Purchase Compact Power Equipment, Inc.
ATLANTA, July 6, 2017 /CNW/ — The Home Depot® today announced a definitive agreement to purchase Compact Power Equipment, Inc., a leading national provider of equipment rental and maintenance services for $265 million in cash. The transaction is expected to close by the end of the company’s fiscal second quarter.
As a long-term commercial partner of The Home Depot since 2009, Compact Power Equipment currently provides compact equipment rentals at more than 1,000 stores across the U.S. and Canada. The company also provides equipment maintenance services nationwide to a range of customers, including The Home Depot. By acquiring Compact Power Equipment, The Home Depot continues to invest in capabilities that uniquely serve its core customers.
“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,” said Craig Menear, chairman, CEO and president of The Home Depot. “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.”
The Home Depot offers tool and equipment rentals at more locations across the U.S. and Canada than anyone else, providing easy access for both Pro and Do-It-Yourself customers. Its large assortment of rental offerings saves customers from the cost and hassle of maintenance and storage.
“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 life-cycle management for commercial equipment,” said Roger Braswell, CEO, Compact Power.
“This acquisition creates many exciting opportunities for our employees and customers as we enter the next stage in our company’s history. We are thrilled and truly look forward to joining The Home Depot team and growing this business,” added COO Richard Porter.
The Home Depot is the world’s largest home improvement specialty retailer, with 2,281 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. In fiscal 2016, The Home Depot had sales of $94.6 billion and earnings of $8.0 billion. The Company employs more than 400,000 associates. The Home Depot’s stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones industrial average and Standard & Poor’s 500 index.
For further information: Financial Community, Diane Dayhoff, Vice President of Investor Relations, 770-384-2666, email@example.com, News Media, Stephen Holmes, Director of Corporate Communications, 770-384-5075, firstname.lastname@example.org, http://www.homedepot.com
Photo courtesy of The Home Depot