Home Depot purchases construction equipment rental provider Compact Power
The Home Depot Inc. (NYSE: HD) is buying Compact Power Equipment Inc., a U.S. provider of equipment rental and maintenance services, for $265 million in cash. Compact Power has been a long-term commercial partner of The Home Depot since 2009.
Based in Fort Mill, South Carolina, Compact Power offers a variety of construction equipment, including: skid steers, cranes, excavators, tractor loaders, trenchers and other aerial equipment. The target has more than a 1,000 stores across the U.S. and Canada. Compact Power also provides equipment maintenance services for clients such as Home Depot.
“The acquisition allows us to further improve the customer experience – in particular for Pros – through enhanced equipment and tool rental offerings,” states Home Depot CEO Craig Menear. “It also allows us to grow Compact Power's best-in-class building services capabilities."
Home Depot is one of the largest retailers of home improvement equipment for the professional services and the everyday do-it-yourself customer community. The buyer has approximately 2,281 retail stores across the U.S. Canada and Mexico. Home Depot reported $94.6 billion in sales revenue in fiscal year 2016. In 2015, Home Depot acquired Interline Brands Inc. to attract more professional contractors.
Construction-related M&A is setting out to be an important industry for buyers in the middle-market throughout 2017. Other deals involving construction-related materials and equipment makers include: Lowe’s (NYSE: LOW) purchase of Maintenance Supply Headquarters, a producer of repair and home improvement tools for the multifamily housing sector; KPS Capital Partners’ acquisition of steel abrasive manufacturer WHA Holding SAS; ABC Supply Co.’s purchase of L&W Supply, a distributor of drywall, ceiling tiles and steel framing materials to building contractors, from USG Corp. (NYSE: USG); Southwire Co. LLC’s buying United Copper Industries Inc., a maker of electrical wire, from KPS Capital Partners.