William Ackman’s Pershing Square Capital Management LP is joining another activist investor in Lowe’s Cos., hoping to profit as the retailer tries to make improvements under a new chief executive.
Pershing Square has built a stake in the home-improvement chain valued at roughly $1 billion as of Tuesday’s close in what is expected to be a friendly investment, according to people familiar with the matter. Lowe’s
LOW, +10.43%
had a market value of roughly $77.7 billion on Wednesday afternoon.
Ackman revealed the position at a conference in New York on Wednesday, said the people, who were in attendance. He built it over the past 45 days, they said.
The people said Ackman supports Lowe’s incoming Chief Executive Marvin Ellison, who during 12 years at Home Depot Inc.
HD, -0.11%
was credited with improving customer service and e-commerce and expanding its professional business. On Tuesday, it was announced that Ellison would leave his position as CEO at struggling retailer J.C. Penney Co.
JCP, +0.00%
to take the top job at Lowe’s, where he is expected to draw from the same playbook he used at Home Depot.
An expanded version of this report appears on WSJ.com.
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