Purchasing new tools for every home improvement project can become expensive — and amass quite a collection.
Rather than buying each tool outright, home improvement suppliers like Home Depot offer the option to rent a wide range of items to help with almost any home improvement project.
To expand its robust tool rental offering, Home Depot has acquired its long-time equipment rental and maintenance services partner Compact Power Equipment for $265 million. The deal is projected to come to a close by the end of Home Depot’s second fiscal quarter.
Compact Power Equipment largely works with Home Depot, providing equipment and maintenance services to more than 1,000 stores across North America.
Home Depot’s CEO, president and chairman, Craig Menear, commented on the acquisition deal and shared what it means for Home Depot’s 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 Menear. “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.”
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This deal will likely help propel Home Depot further into a lead position in the home improvement sector, giving it a leg up over other U.S. home improvement supply companies including the likes of Lowe’s Home Improvement and ACE Hardware.
