Home Depot Buys Compact Power Equipment in $265M Deal
The Home Depot has acquired Compact Power Equipment in a $265 million cash deal. Compact Power Equipment provides equipment rentals and maintenance services at more than 1,000 stores. The agreement is intended to integrate these facets of Compact’s business into Home Depot’s stores. Officials say they don't expect any layoffs to occur as a result of the acquisition.
Total Retail’s Take: While chief rival Lowe's has been busy in the acquisition market, this is Home Depot’s first significant purchase in two years. In July 2015, The Home Depot bought Interline Brands in a $1.625 billion deal. Stephen Holmes, a Home Depot spokesperson, says the acquisition of Compact Power Equipment will grow the company’s “pro” business, which is focused on more intense and expert users of tools. “The expertise of Compact Power’s associates are a key part of that strategy,” Holmes said. The Home Depot looks to continue the momentum from a strong 2016 fiscal year, in which it saw sales and earnings grow nearly 7 percent and 14 percent, respectively.