Nordstrom will deal privately for $6.25B with the founding family, the Mexican retailer
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The family that founded Nordstrom and El Puerto de Liverpool is buying Nordstrom, paving the way for the retailer to return to operating as a private company.
Nordstrom on Monday announced its agreement for the Nordstrom family and a Mexico-based company to buy their shares.
The planned all-cash transaction, valued at $6.25 billion, comes about 10 months after Nordstrom set up a special committee to weigh proposals from the Nordstrom family. The Nordstrom family and El Puerto de Liverpool put forward a $23-per-share offer to take the company private in September.
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The Nordstrom family, including CEO Erik Nordstrom, CBO Pete Nordstrom and others, and El Puerto de Liverpool will pay $24.25 per share to acquire the retailer, Nordstrom said Monday.
Shoppers leave a Nordstrom store on May 26, 2021, in Chicago. (Scott Olson/Getty Images)
That price “represents a premium of approximately 42% to the Company’s normal closing price intact on March 18, 2024, the last trading day prior to media speculation about the possibility,” the broker said.
“A special committee of Nordstrom’s Board of Directors reviewed this proposal against the Company’s independent growth opportunity. After a rigorous and independent evaluation and discussion with external financial and legal advisors, the special committee unanimously concluded that this transaction provides great value to all public. shareholders with a large number of untouchable stock values ,” said Nordstrom chairman Brad Tilden.
Nordstrom, the Nordstrom family and El Puerto de Liverpool expect the completion of the transaction to take place in the first six months of next year. It will require “the approval of the holders of two-thirds of the Company’s common stock and the Company’s majority shareholders who are not Nordstrom Family or Liverpool or their affiliates and the Company’s directors and Chapter 16 officers” to pass, according to Nordstrom.
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The seller will officially return to privacy after that. It has been a publicly traded company for more than fifty years, since its public offering in 1971.
A Nordstrom department store at the Broadway Plaza shopping center in downtown Walnut Creek, California, on July 30, 2017. (Smith Collection/Gado/Getty Images)
The Nordstrom family will hold 50.1% of the retailer post-transaction, making them the majority owners, according to the company. El Puerto de Liverpool’s share will be 49.9%.
| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| JWN | Company NORDSTROM INC. | 23.06 | +0.35 |
+1.54% |
The company, founded by John W. Nordstrom and Carl Wallin, dates back to 1901. It was founded in Seattle, the city where the duo opened their first store and where the company is headquartered to this day.
Erik Nordstrom said the news “marks an exciting new chapter for the business.”
Shoppers enter a Nordstrom store on April 1, 2003, on Michigan Avenue in Chicago. (Scott Olson/Getty Images)
At the end of the third quarter, the retailer operated 93 Nordstrom stores, six Nordstrom Local sites, 280 Nordstrom Rack stores and two Last Chance clearance stores, according to its third quarter report.
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Nordstrom generated $10.69 billion in revenue during the first quarter of 2024. Its net profit, on the other hand, was $128 million during the same period.
In late November, the retailer forecast “low growth to 1.0 percent” in annual revenue “compared to the 53-week fiscal 2023.”
Its market capitalization reached about $3.99 billion as of Monday mid-morning.
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