Marvin Ellison, credited by Bloomberg with playing a vital role in Home Depot Inc HD 1.2%‘s turnaround, was named as Lowe’s Companies, Inc. LOW 0.63%‘s new CEO Tuesday.

What Happened

Ellison left Home Depot to serve as J C Penney Company Inc JCP 4% CEO-designee in 2014 and has led the company since then. On Tuesday, JC Penney confirmed Ellison is leaving his post to accept the CEO role at Lowe’s and will be replaced with a newly created “Office of the CEO” which will consist of four high-level executives who will share equal responsibilities until Ellison’s replacement is appointed.

Why It’s Important

During Ellison’s tenure at JC Penney, the executive oversaw the retirement of $1.4 billion in debt, renewed and enhanced its revolving credit facility and improved its overall financial position, JC Penney Lead Independent Director Ronald W. Tysoe said in a press release.

Based on JC Penney’s stock decline Tuesday — shares were down 4 percent at the time of publication — investors may be concerned with the executive’s departure.

What’s Next

Ellison will assume the CEO title at Lowe’s July 2.

“Marvin joins Lowe’s at a critical inflection point as we work to enhance our competitive position and capitalize on solid project demand in an evolving consumer environment,” said Marshall Larsen, lead director of the Lowe’s board. “We look forward to shepherding an exciting new chapter for Lowe’s under Marvin’s leadership.”