Nordstrom is set to transition from a public to a private company in a significant deal valued at $6.25 billion. The agreement, which involves the Nordstrom family and the Mexican department store chain El Puerto de Liverpool, will result in the Nordstrom family holding a majority ownership majority stake.
Shareholders of Nordstrom will receive $24.25 in cash for each share they own, which represents a substantial premium of 42% over the company’s stock price shortly before the speculation of a potential transaction began. Additionally, there is a potential special dividend of up to $0.25 per share, contingent upon the closing of the deal. This dividend reflects Nordstrom’s available cash reserves.
The transaction is expected to finalize in the first half of 2025. Currently, the Nordstrom family holds a 33.4% stake in the company, while Liverpool owns approximately 9.6%, having invested around $300 million in 2022.
Erik Nordstrom, CEO of the company, expressed enthusiasm about this change, emphasizing the family’s dedication to ensuring Nordstrom continues to thrive. The Nordstrom Board of Directors, with the exception of Erik and Pete Nordstrom, unanimously approved the deal, stating it provides greater value for shareholders.
Once the deal is completed, Nordstrom’s common stock will no longer be traded publicly, marking a new chapter for the retailer with over 350 locations.
In summary, this acquisition reflects the Nordstrom family’s commitment and strategic vision for the future, indicating a hopeful outlook for the company’s continued success. It could lead to more personalized service and innovation, as they refocus on meeting the needs of their customers without the pressures of public market expectations.