Compact Power Inc.– Power Not So Compact

FORT MILL, S.C. – Compact Power Inc. (CPI) completed an institutional round of funding and acquired certain assets of PowerHouse Equipment, Mertz, Ponca City, Okla., and the Jaden Group of Companies, Brisbane, Australia. Funding included in excess of $15 million in equity and long-term commitments, positioning CPI as the third largest player in the compact utility market, following Toro and Bobcat.

Led by Roger Braswell, CPI is based in North Carolina and began operations in fall 2003, its goal to gain leadership in the small power equipment niche. It combines three well-established brands – PowerHouse, Kanga and Boxer – and its product portfolio includes compact, hydraulic power systems on tracks or wheels and other construction equipment less than 50 hp or 5,000 pounds.

CPI’s acquisition of PowerHouse Equipment’s existing wholesales operations offers the new brand the management, branded products, customer base, distribution channels, and sales and marketing structure. Braswell’s experience in the field – a compact utility pioneer who introduced the technology when he imported the Dingo Digging System from Australia in 1995 – is driving the new conglomerate. Since its introduction, the compact utility market has grown significantly, and it is expected to reach between $500 and $625 million by 2007. Already, the PowerHouse brand is shelved in more than 300 Home Depot Tool Rental Centers nationwide.

Additionally, CPI holds exclusive North American distribution rights to Kanga and Boxer loader brands, as well as manufacturing rights to Kanga products. The company plans to grow these dealership bases, expand national account business and grow revenues ten-fold in the next four years.