Ackman Takes Roughly $1 Billion Stake in Lowe's

By Cara Lombardo 

William Ackman's Pershing Square Capital Management LP has joined another activist investor in Lowe's Cos., taking a roughly $1 billion stake in the home-improvement retailer, according to people familiar with the matter.

Mr. Ackman revealed the position at a conference in New York on Tuesday, said the people, who were in attendance. Lowe's has a market value of roughly $77.7 billion.

The people said Mr. Ackman supports Lowe's incoming Chief Executive Marvin Ellison, who during 12 years at Home Depot Inc. was credited with improving customer service and e-commerce and expanding its professional business. On Tuesday it was announced that Mr. Ellison would leave his position as CEO at struggling retailer J.C. Penney Co. to take the top job at Lowe's, where he is expected to implement many of the same improvements he made with Home Depot.

Lowe's CEO Robert Niblock said he would retire in March, a week after three new directors joined the board as part of an agreement with activist investor D.E. Shaw & Co., which owns about a 1% stake.

Lowe's shares rose 9.9% after the company reported growth in sales and earnings.

Write to Cara Lombardo at [e-mail]

(END) Dow Jones Newswires

May 23, 2018 12:28 ET (16:28 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.