Depot ties the knot with rental company

After years of working with Compact Power Equipment to help power its rental departments, The Home Depot announced a deal to acquire the company for $265 million in cash. The transaction is expected to close by the end of the company's fiscal second quarter.

As a 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.

"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."

Compact Power CEO Roger Braswell pointed to 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 Braswell said.