The Home Depot, Atlanta, GA, has agreed to acquire EnerBank USA from CMS Energy.
EnerBank provides home improvement loans, which remodeling and trade contractors can offer their customers. It provides loans for a variety of projects, including window and door replacements, heating and air conditioning upgrades, kitchen and bath remodeling, roofing, painting and landscaping work.
'This acquisition is another part of our strategy to expand our business and relationships with professional customers,' said Frank Blake, executive vice president of business development and corporate operations for The Home Depot. 'EnerBank has a unique way of helping home improvement contractors grow their business, especially the smaller contractors who frequent our retail stores. EnerBank's focus on offering loans via contractor referrals complements our existing credit offerings and partnerships.'
When contractors want to close a home improvement deal with a potential client, they tell the client to call EnerBank to gain approval for a loan. The loan starts when the homeowner is satisfied with the work and endorses an EnerBank check to the contractor. EnerBank operates no branches.
'This acquisition gives us the opportunity to offer our services to The Home Depot's large contractor customer base,' said Louise Kelly, CEO of EnerBank.
At the end of fiscal 2005, EnerBank had net loan assets of $76 million.