The Home Depot 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.