Nordstrom, the prominent retail chain, is set to transition from a public company to private ownership as part of a $6.25 billion deal. This acquisition involves the Nordstrom family, who already hold a significant stake in the company, alongside the Mexican department store chain El Puerto de Liverpool. Upon completion of the transaction, the Nordstrom family will hold a majority ownership stake, effectively taking the company private.
As per the agreement, shareholders will be compensated with $24.25 in cash for each share they own, which represents a 42% premium based on Nordstrom’s stock price prior to the acquisition discussions. Additionally, there is a possibility for a special dividend of up to $0.25 per share, depending on the company’s cash position at the deal’s conclusion.
The transaction is anticipated to finalize in the first half of 2025. Notably, the Nordstrom family, which currently owns 33.4% of the business, will hold 50.1% after the deal, while Liverpool will hold the remaining 49.9%.
Erik Nordstrom, CEO of the company, expressed enthusiasm for the future of Nordstrom, stating that this move represents a new chapter aimed at ensuring the brand continues to thrive. The Nordstrom Board of Directors unanimously endorsed the deal, underscoring its value to shareholders.
This strategic shift to private ownership could allow Nordstrom greater flexibility to implement long-term strategies without the pressures of public market scrutiny.
In conclusion, this acquisition marks an important transition for Nordstrom, with potential benefits for both the company and its shareholders as it embarks on a new phase of development.