The Home Depot has announced its agreement to acquire Compact Power Equipment Inc. for $265 million, enhancing its tool and equipment rental offerings.

Target Company Overview

Compact Power Equipment Inc. is a Fort Mill, South Carolina-based provider specializing in equipment rental and maintenance services. Operating as a long-term partner of The Home Depot since 2009, the company offers compact equipment rentals at over 1,000 retail locations across the United States and Canada. In addition to equipment rentals, Compact Power provides nationwide equipment maintenance services, positioning itself as a critical supplier to The Home Depot and a key player in the industry.

Industry Overview in the United States

The equipment rental industry in the United States has seen substantial growth over the past decade, driven by increased demand from construction and industrial sectors. This growth has been propelled by the rising trend of outsourcing equipment needs, allowing businesses to optimize cash flow while mitigating maintenance costs. As a result, many players in the market have expanded their service offerings to cater to a broader customer base.

In recent years, the U.S. has experienced a surge in construction projects, both residential and commercial, fueling the demand for specialized equipment rentals. Wit