Nordstrom is set to transition to a private ownership structure as members of the Nordstrom family, alongside the Mexican department store chain El Puerto de Liverpool, reach an agreement to acquire the company for approximately $6.25 billion. Under this deal, shareholders will receive $24.25 in cash for each share of common stock they hold, representing a 42% premium over the stock’s closing price before speculation about the buyout began. Additionally, there may be a special dividend of up to $0.25 per share.
The transaction is expected to finalize in the first half of 2025, at which point the Nordstrom family will hold a 50.1% stake in the business while Liverpool will own 49.9%. Currently, the Nordstrom family holds about 33.4% of the company, with Liverpool holding a 9.6% stake acquired last year for around $300 million. This acquisition marks a significant shift for Nordstrom, which operates over 350 locations and has a long-standing tradition of customer service, as stated by CEO Erik Nordstrom.
The decision to go private has been unanimously approved by the Nordstrom Board of Directors, aiming to enhance the company’s focus and long-term growth potentials without the pressures of public markets. Erik Nordstrom expressed optimism about this new chapter, stating their commitment to continued excellence in service.
This acquisition not only provides current shareholders with a premium cash offer but also positions Nordstrom for future growth and adaptability in a competitive retail landscape. As the retail environment evolves, having a supportive family-led ownership could encourage innovative strategies and enhance customer experiences.
In summary, the Nordstrom family’s acquisition of the company represents a promising shift towards private ownership that could pave the way for renewed focus on customer satisfaction and operational flexibility in the years to come.