Nordstrom on Monday announced it has agreed to be taken private in an acquisition by members of the Nordstrom family and Mexican retail group El Puerto de Liverpool in a deal worth $6.25 billion.
Erik, Pete, Jamie Nordstrom and other members of the Nordstrom family and Liverpool will acquire outstanding shares not already owned by the Nordstrom family and Liverpool in an all-cash transaction, giving the Nordstrom family a majority ownership stake, the company said.
The International Business Times previously reported that the family was trying to buy back the company with a $23-a-share offering.
"The special committee of the Nordstrom Board of Directors reviewed this proposal against the Company's standalone prospects for growth," Eric Sprunk, chairman of the special committee, said. "Following a rigorous and independent evaluation and consultation with outside financial and legal advisors, the special committee unanimously concluded that this transaction offers greater value for all public shareholders at a significant premium to the unaffected share price."
Nordstrom common shareholders will receive $24.25 in cash for each share they hold, a premium of about 42% on the company's closing common stock price as of March 18, 2024, which was the last trading day before media speculation about a potential deal. The company's board also intends to authorize a special dividend of up to $0.25 per share prior to, and contingent upon, the close of the transaction.
The transaction was unanimously recommended by the special committee, and the board of directors, after Erik and Pete Nordstrom recused themselves, unanimously approved the deal.
"The Nordstrom Board regularly considers alternatives to enhance value, culminating in this most recent process," said Brad Tilden, chairman of the Nordstrom Board. "I want to thank the special committee for their diligent and thorough work evaluating and negotiating this transaction over the past several months."
The transaction is expected to close in the first half of 2025, pending regulatory conditions and shareholder approval.
"For over a century, Nordstrom has operated with a foundational principle of helping customers feel good and look their best," said Nordstrom CEO Erik Nordstrom. "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."
"We're grateful to the employees, customers and shareholders who have shaped Nordstrom into the company it is today," said Pete Nordstrom, chief brand officer of Nordstrom. "Since our founding in 1901, we have been committed to providing our customers with the best possible service — and to improving it every day. We look forward to building on that commitment in this next phase of the Company's evolution."
Following the close of the transaction, Nordstrom will become a private company, with 50.1% owned by the Nordstrom family and 49.9% owned by Liverpool.
"Nordstrom is one of the worldwide leaders in department store retailing, and we're thrilled to be investing in a company that has meaningfully shaped the industry for nearly 125 years," said Graciano F. Guichard G., executive chairman of the Board of Directors of Liverpool. "We are honored to partner with the Nordstrom Family and the Company's talented team as they continue to deliver outstanding service to customers."
This isn't the first time the family has attempted to buy the chain.
In 2018, Nordstrom rejected a bid worth $8.4 billion, Reuters reported. It said the offer was too small.
-With TMX
