ATLANTA, July 6, 2017 /PRNewswire/ -- 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.
Certain statements contained herein constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may relate to, among other things, the demand for our products and services; effects of competition; state of the residential construction, housing and home improvement markets; capital allocation and expenditures; financial outlook; successful closing of the Compact Power Equipment acquisition; and integration of Compact Power into our organization and the ability to recognize the anticipated synergies and benefits of the acquisition. Forward-looking statements are based on currently available information and our current assumptions, expectations and projections about future events. You should not rely on our forward-looking statements. These statements are not guarantees of future performance and are subject to future events, risks and uncertainties – many of which are beyond our control or are currently unknown to us – as well as potentially inaccurate assumptions that could cause actual results to differ materially from our expectations and projections. These risks and uncertainties include but are not limited to those described in Item 1A, "Risk Factors," and elsewhere in our Annual Report on Form 10-K for our fiscal year ended January 29, 2017 and in our subsequent Quarterly Reports on Form 10-Q.
Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements other than as required by law. You are advised, however, to review any further disclosures we make on related subjects in our periodic filings with the Securities and Exchange Commission.
SOURCE The Home Depot