- Nordstrom is set to transition into a private entity following a buyout agreement worth $6.25 billion, orchestrated by the founding family of Nordstrom in collaboration with Mexican retailer El Puerto de Liverpool.
- According to a press release, common shareholders are set to receive $24.25 in cash for each share of Nordstrom common stock they own.
- In September, the Nordstrom family proposed a bid of $23 per share for the retail chain, resulting in a company valuation of approximately $3.76 billion.
On Monday, Nordstrom revealed plans to transition into a private company following a buyout agreement estimated at approximately $6.25 billion. The deal involves Nordstrom’s founding family and the Mexican department store El Puerto de Liverpool.
The company’s board of directors has unanimously approved the transaction, which is anticipated to close in the first half of 2025.
The Nordstrom family is set to secure majority ownership of the company, holding 50.1%, while Liverpool will retain a 49.9% stake. According to a press release, common shareholders are set to receive $24.25 in cash for each share of Nordstrom common stock they possess.
In a recent press release, Nordstrom CEO Erik Nordstrom emphasized the company’s commitment, stating, “For over a century, Nordstrom has operated with a foundational principle of helping customers feel good and look their best.” “Today signifies a significant development for the business. My family expresses eagerness to collaborate with our teams to secure a prosperous future for Nordstrom.
The retailer has attempted to go private before. An earlier initiative lost momentum in 2018. In September, the Nordstrom family proposed a bid of $23 per share for the retail chain, placing the company’s valuation at approximately $3.76 billion.
In early trading, Nordstrom’s stock experienced a decline of approximately 1%. Following a Reuters report in March indicating the family’s intention to take the company private, shares have surged significantly.
Nordstrom surpassed Wall Street’s sales forecasts for November during the fiscal third quarter, reporting a revenue increase of approximately 4% compared to the previous year. The company provided a modestly optimistic full-year sales forecast, citing expectations of a subdued holiday season.
Luxury clothing stores are facing challenges as major retailers such as Walmart, Best Buy, and Target report that consumers are increasingly selective about their purchases. Shoppers are prioritizing essential items over luxury goods and are more focused on pricing than ever before.
Founded in 1901, Nordstrom began as a shoe store and has since evolved into a department store offering a diverse range of clothing and accessories. The company operates over 350 locations, including Nordstrom, Nordstrom Local, and Nordstrom Rack.
El Puerto de Liverpool manages two additional department store chains, Liverpool and Suburbia, and possesses 29 shopping centers throughout Mexico.
