Nordstrom seals a $6.25 billion private deal with the Mexican retailer’s founding family

The family that founded Nordstrom and El Puerto de Liverpool is purchasing Nordstrom, paving the way for them Retailer To return to operating as a private company.

Nordstrom announced Monday its agreement with the Nordstrom family and the Mexico-based company to buy shares they don’t already own.

The planned cash deal, valued at $6.25 billion, comes about 10 months after Nordstrom formed a special committee to evaluate proposals from the Nordstrom family. The Nordstrom family and El Puerto de Liverpool made a $23-per-share bid to take the company private in September.

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The Nordstrom family, including CEO Eric Nordstrom, CEO Pete Nordstrom and others, and El Puerto de Liverpool will pay $24.25 per share to acquire the retailer, Nordstrom said Monday.

This price “represents a premium of approximately 42% to the closing price of the company’s unaffected common stock on March 18, 2024, the last trading day before media speculation about a potential deal,” the retailer said.

“The Special Committee of the Nordstrom Board of Directors reviewed this proposal in light of the company’s independent growth projections. After a rigorous and independent evaluation and consultation with outside financial and legal advisors, the Special Committee unanimously concluded that this transaction provides greater value to the general public. Nordstrom Chairman Brad Tilden: “Shareholders are at a significant premium over the unaffected stock price.”

Nordstrom, the Nordstrom family and El Puerto de Liverpool expect the transaction to be completed 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 holders of a majority of the company’s stock not owned by the Nordstrom or Liverpool family or their affiliates and the company’s directors and Section 16 officers” to pass, according to Nordstrom.

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The retailer will officially return to being privately owned after that. It has been a publicly traded company for more than five decades, since its initial public offering in 1971.

The Nordstrom family will own 50.1% of the retailer Post transactionWhich makes them the majority owner, according to the company. El Puerto de Liverpool has a 49.9% stake.

tape	protection	last	It changes	% changes
Jeon	Nordstrom Company	22.25	-0.41	-1.81%

The company, co-founded by John W. Nordstrom and Carl Whalen, dates back to 1901. It originated in Seattle, the city where the couple opened their first store and where the company is headquartered to this day.

Eric Nordstrom said the news “represents an exciting new chapter for the business.”

As of the end of the third quarter, the retailer operated 93 Nordstrom stores, six local Nordstrom locations, 280 nordstrom rack store and two Last Chance clearance stores, according to its third-quarter earnings report.

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Nordstrom had revenue of $10.69 billion during the first three quarters of 2024. Meanwhile, its net profit was $128 million in the same time frame.

In late November, the retailer forecast “flat to 1.0 percent growth” in annual revenue for this year “versus 53 fiscal weeks of 2023.”

that it Market value It hovered around $3.99 billion as of mid-morning Monday.