The Nordstrom family, alongside a Mexican department store chain, has announced plans to take Nordstrom private in a deal valued at $6.25 billion. As part of this transaction, shareholders will receive $24.25 in cash for each share of common stock they own, complemented by a potential special dividend of up to $0.25 per share. The acquisition is expected to conclude in the first half of 2025.
Once the deal is finalized, all outstanding common shares of Nordstrom will be purchased, resulting in the Nordstrom family and El Puerto de Liverpool owning 50.1% and 49.9% of the company, respectively. Currently, the Nordstrom family holds a 33.4% stake, while Liverpool has a 9.6% interest in the company, which it acquired for approximately $300 million in 2022.
Erik Nordstrom, the CEO, expressed optimism about this transition, stating it marks an exciting new chapter that will allow Nordstrom to continue flourishing in the future. The board of directors, following consultations from a specialized committee, unanimously approved the deal, underscoring that it offers considerable value to public shareholders.
By taking the company private, Nordstrom aims to focus more on strategic growth without the pressures of public market expectations. The decision reflects a trend where companies are considering private ownership to pursue long-term objectives without the inherent volatility of public stock markets.
In summary, the Nordstrom family’s acquisition represents a significant shift for the iconic retail brand, which has over 350 locations. This change may enable Nordstrom to innovate and adapt more freely, ensuring its legacy continues in a changing retail landscape. The move could be seen as a hopeful step towards a more resilient future for the brand.