The Nordstrom family, in collaboration with the Mexican department store chain El Puerto de Liverpool, is set to take Nordstrom private in a deal valued at $6.25 billion. Under the agreement, shareholders will receive $24.25 in cash per share of common stock they own, along with the possibility of a special dividend of up to $0.25 per share. The transaction is anticipated to be completed in the first half of 2025, marking a significant shift as Nordstrom transitions from a public to a private company.
Currently, the Nordstrom family holds a 33.4% stake in the company, while Liverpool has a 9.6% ownership acquired last year for approximately $300 million. Upon completion of the sale, the Nordstrom family will control 50.1% of the company, with Liverpool owning the remaining 49.9%.
Erik Nordstrom, the CEO, expressed optimism about the future, emphasizing the company’s commitment to customer satisfaction that has defined Nordstrom for over a century. He stated, “Today marks an exciting new chapter for the business.”
The decision by the board to approve the deal was made unanimously, highlighting the significant premium offered to shareholders as an appealing aspect of the agreement. The key factor in this transaction is the expectation of enhanced value for shareholders compared to the company’s recent market performance.
In summary, this acquisition represents a new beginning for Nordstrom, with strong backing from both family members and a reputable business partner. As it moves forward, the company aims to maintain its legacy while adapting to the dynamics of the retail market.
This deal not only reflects the Nordstrom family’s commitment to their brand but also underscores the growing collaboration between retail giants in evolving market conditions. It’s a hopeful reminder that strategic partnerships can lead to greater stability and innovation in the retail industry.