Boston, MA 09/16/2013 (wallstreetpr) – Lowe’s Companies, Inc. (NYSE:LOW) is considered to be a market giant in the field of home improvement industry and is currently placed at the 56th position in the prestigious Fortune500 company list. With overall revenue just crossing $50 billion, it is presently the second largest home retail supply company across the globe.
On August 30, 2013 Lowe’s acquired Orchard Supply Hardware (OSH) for $205 million in an all cash deal and expanded its presence in the home improvement industry. The acquisition deal which gave Lowe’s the ownership control of OSH’s 72 stores is seen as a strategic move adopted by the acquiring company.
Lowe’s was struggling to build a market in the California region which was mostly dominated by Home Depot, Inc. (NYSE:HD) the largest home improvement retail company of the United States. Although OSH succumbed to massive debt pressure and falling sales over the past few years, however, it maintained a powerful presence in California’s home improvement market. The key officials of Lowe’s saw this as an opportunity to gain market share in the strategically important market space of California.
Lowe’s stock prices witnessed an upward trend in the NYSE following the announcement of the probable acquisition deal which came out on August 12, 2013. Its stock price registered a 52 week high on Sept. 11, 2013. After the acquisition deal has been given shape, Lowe’s appointed Michael P. McDermott as a senior Vice President and general merchandising manager to handle the company’s building and maintenance section. Prior to joining Lowe’s on Sept. 03, 2013, he initially served as a top official in General Electric and his inclusion in Lowe’s top management will surely add more values to the company.
Earlier on August 21, 2013 Lowe’s announced its 2Q sales and earnings results and the figures were much impressive. The company reported an increase in sales by 10.3% in the 2Q while it registered a 26% increase in the net earnings.
