Nordstrom Goes Private in $6.25 Billion Deal with Founding Family and Mexican Retailer
After much speculation, it has been confirmed that Nordstrom will be going private in a massive buyout deal worth $6.25 billion USD. The company’s founding family and Mexican retailer El Puerto de Liverpool have agreed to the transaction, which was unanimously approved by Nordstrom’s board of directors earlier this week.
Nordstrom Family and Liverpool Take Majority Ownership
According to reports from CNBC, the Nordstrom family will hold a majority ownership of 50.1%, while Liverpool will own 49.9%. This means that common shareholders can expect to receive $24.25 USD per share of Nordstrom common stock in cash.
“An Exciting New Chapter” for Nordstrom
In an official press release, Nordstrom CEO Erik Nordstrom expressed his excitement for the company’s future as a private entity. He stated, “For over a century, Nordstrom has operated with a foundational principle of helping customers feel good and look their best. Today marks an exciting new chapter for the business. On behalf of my family, we look forward to working with our teams to ensure Nordstrom thrives long into the future.”
Second Attempt at Going Private
This is not the first time that Nordstrom has expressed interest in becoming a private company. In 2018, the retailer attempted to do so but ultimately did not follow through. However, in September of this year, the Nordstrom family offered $23 USD per share, valuing the company at approximately $3.76 billion USD.
Strong Sales Performance and Future Outlook
Despite the challenges faced by the retail industry, Nordstrom has continued to perform well. In November, the company beat Wall Street’s sales expectations with a revenue growth of 4% year over year. With this new deal, Nordstrom is poised for continued success in the future.
Expected to Close in First Half of 2025
The buyout deal is expected to close in the first half of 2025, pending regulatory approvals. This marks a significant milestone for Nordstrom and its long-standing legacy in the retail industry.
