Facing an Activist Investor, Lowe's Appoints New Directors

By Allison Prang 

Lowe's Cos. said Friday it is appointing two new board members -- including a pioneer of activist investing -- after talks with investment firm D.E. Shaw & Co.

The home-improvement retailer said Relational Investors co-founder David Batchelder and Adtalem Global Education Chief Executive Lisa Wardell will join its board March 22.

Mr. Batchelder, Ms. Wardell and T. Rowe Price Group Chairman Brian Rogers will also be put up for election to the board at the company's annual meeting later this year.

The company's announcement comes less than a week after Bloomberg reported, citing people familiar with the matter, that D.E. Shaw had taken a stake in Lowe's.

"We are pleased to welcome David, Brian and Lisa as new independent directors to the Lowe's board and especially value the constructive discussions we have had with the D.E. Shaw group," Lowe's CEO Robert Niblock said in prepared remarks.

D.E. Shaw portfolio manager Quentin Koffey commended Lowe's decision and in prepared remarks said "the refreshed board and the management team are committed to achieving outstanding performance and maximizing shareholder value."

D.E. Shaw's engagement with Lowe's follows a campaign it launched last year with EQT Corp., as it pushed for the energy company to break up after it completed its purchase of Rice Energy. Mr. Koffey joined D.E. Shaw from Elliott Management Corp., where he helped run a number of the well-known activist's campaigns.

Relational Investors, which is now closed, had pushed for changes in Home Depot Inc. more than a decade ago.

Shares of Lowe's rose 2.5% in premarket trading. Shares have gained 42% over the last year.

David Benoit contributed to this article

Write to Allison Prang at [e-mail]

(END) Dow Jones Newswires

January 19, 2018 08:56 ET (13:56 GMT)

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