Atlanta, GA, May 9, 2006--Home Depot today announced a definitive agreement to acquire EnerBank USA from CMS Energy. The move will allow contractors to offer homeowners an EnerBank USA home improvement loan
to pay for the contractor's work.
EnerBank USA, a wholly owned subsidiary of CMS Energy, provides loans to homeowners; now remodeling and trade contractors can offer a home improvement loan to prospective customers. The bank provides loans to homeowners for a wide variety of home improvement projects.
"This acquisition is another part of our strategy to expand our business and relationships with professional customers," said Frank Blake, EVP, 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 phone EnerBank. Typically within minutes, EnerBank lets the contractor's customers know if they will be approved for a loan. The loan actually starts when the homeowner is satisfied that the job is complete and endorses an EnerBank check to the contractor. Interacting with customers only over the phone, 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. "This growth opportunity and the resources of The Home Depot will also strengthen the high level of service we offer to our existing contractors and program sponsors."
EnerBank's business focus to provide home improvement loans through professional contractors will remain the same after the planned acquisition. In addition, EnerBank will continue to be run by its current leadership. EnerBank is an industrial bank chartered in the state of Utah. At the end of fiscal 2005, EnerBank employed 37 associates,
