Nordstrom is set to transition from a public company to private ownership through a significant acquisition deal valued at $6.25 billion. The agreement, involving the Nordstrom family and the Mexican department store chain El Puerto de Liverpool, means that the Nordstrom family will emerge as the majority stakeholders in the business.
Current shareholders of Nordstrom will receive $24.25 for each common share they hold, which reflects a 42% premium compared to the company’s stock price prior to news of the potential deal. Additionally, there is a possibility for a special dividend of up to $0.25 per share shortly before the transaction closes, contingent upon Nordstrom’s cash reserves.
The transaction has received unanimous approval from Nordstrom’s Board of Directors, excluding Erik and Pete Nordstrom, who recused themselves due to their family ties. The board, informed by a special committee, determined that this sale provides public shareholders with superior value compared to recent stock prices.
This acquisition not only signifies a new beginning for Nordstrom but aligns with the company’s long-standing commitment to enhancing customer experiences. Erik Nordstrom, the company’s CEO, expressed optimism about this new chapter, emphasizing the family’s dedication to ensuring the future success of Nordstrom.
The deal is anticipated to finalize in the first half of 2025. Post-acquisition, the breakdown of ownership will see the Nordstrom family holding a 50.1% stake, while Liverpool will hold the remaining 49.9%. As a result of going private, Nordstrom’s stock will be delisted from public markets.
Summarizing, this acquisition is seen as a strategic move that not only promises immediate financial benefits for shareholders but also positions Nordstrom for potential growth and innovation under the guiding hands of its founding family. As they steer the company into the future, there is hope for continued excellence in customer service and retail experiences.