A company that once ran a cash-strapped furniture store and now has an office in its backyard is buying up home and office furniture and other real estate assets as part of a deal to fund its growth.
The company, which has offices in both New York and Los Angeles, said it had secured a $1.5 billion deal with a bank to buy $1 billion in assets that includes the company’s office space, a fleet of office vehicles, a collection of industrial equipment, office furniture, and a collection to build its own office facilities.
The deal will add $2.5 to $2 trillion in assets to Home Depot’s financial position.
Home Depot CEO Paul Lee is expected to unveil the deal in the coming weeks.
Home depot said the purchase of office equipment would boost the company by $1 to $3 billion over the next decade.
HomeDepot is a large furniture retailer, and has had to cut its staff by more than 30 percent over the past two years.
The acquisition will also create an additional $4.2 billion for the company over the life of the loan.
Home Depot has a net worth of about $8.3 billion, according to the S&P 500 index.
It operates stores in 13 states and Washington, D.C.
It is the second largest furniture retailer in the U.S., with more than 4,400 stores and an annual profit of about a billion dollars.
It has struggled with declining sales over the last few years.