Nordstrom is set to be taken private in a significant deal involving family members and a Mexican department store chain, El Puerto de Liverpool, which is valued at approximately $6.25 billion. Shareholders will receive $24.25 in cash for each share of common stock, along with the possibility of an additional special dividend of up to $0.25 per share.
This transaction is projected to close in the first half of 2025 and will result in the Nordstrom family holding a 50.1% ownership stake, while Liverpool will own 49.9%. Currently, the Nordstrom family holds a 33.4% stake in the company, and Liverpool owned 9.6% as of its acquisition last year.
Erik Nordstrom, CEO of Nordstrom, expressed enthusiasm for the new direction of the company and emphasized the family’s commitment to ensuring its long-term success. The deal has received unanimous approval from Nordstrom’s Board of Directors, excluding the family members involved in the acquisition.
The proposed cash offer represents a 42% premium over the stock’s price before speculation of the deal began. As a result of going private, Nordstrom’s stock will no longer be publicly traded, as confirmed by the company’s recent trading price of $24.17.
This acquisition marks a pivotal moment for Nordstrom, allowing the company to refocus its operations and long-term goals away from the pressures of the public market.
In summary, this transition presents both a challenge and an opportunity, guiding Nordstrom into an era where they can adapt and evolve without the short-term scrutiny that often comes with being publicly traded. This could ultimately lead to a renewed focus on customer experience and innovation in retail, fostering hope for a vibrant future for Nordstrom.