Nordstrom, a century-old department store, has agreed to be acquired and taken private by Nordstrom family members and a Mexican retail group for $6.25 billion. This deal comes amidst challenges faced by department stores, including competition from discount chains and the need to revive lackluster sales.
Century-old department store Nordstrom has agreed to be acquired and taken private by Nordstrom family members and a Mexican retail group in a $6.25 billion deal. This comes as department store s are facing pressure from discount chains and other competition. Nordstrom shareholders will receive $24.
25 in cash for each share of Nordstrom common stock they own, or about $4 billion in all, representing a 42% premium on the company's stock as of March 18, which is the day before media reports of a potential transaction began to circulate. The Nordstroms will also pick up more than $2 billion in debt. As a private business, the Nordstroms may have more leeway in reviving a department store chain that, like others, has looked to revive lackluster sales for years. Other publicly traded retailers, including Macy's and Kohl's, have faced pressure from major investors in order to provide bigger returns to investors, while also attempting to fend off competition from lower-cost rivals such as Walmart and Amazon.com. 'While a change in ownership does not automatically remedy all of the problems with the department store operation, it will allow the family and their backers to take a long term view of the business and make necessary investments and changes away from the short term scrutiny of public markets,' noted GlobalData analyst Neil Saunders in a Monday research note. He added, 'The family have the talent and ability to enact change as does El Puerto de Liverpool. They will likely run the business as a retailer rather than as some kind of financial play thing which, in our view, is a very positive thing for the long term health of the brand.'Shares of Nordstrom fell 36 cents, or 1.5%, to $24.17 in late morning trading. Nordstrom family, El Puerto de Liverpool's offer that offer announced Monday tops the previous $23-per-share bid that the Nordstrom family and Mexican retail group, El Puerto de Liverpool, made in September
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Nordstrom to Be Taken Private in $6.25 Billion DealCentury-old department store Nordstrom will be acquired by Nordstrom family members and Mexican retail group El Puerto de Liverpool for $6.25 billion. Shareholders will receive $24.25 in cash per share, a 42% premium. The Nordstrom family will have a majority ownership stake in the company after the deal closes.
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Nordstrom to be Acquired by Family and Mexican Retail Group for $6.25 BillionCentury-old department store Nordstrom has agreed to be taken private in a $6.25 billion deal led by the Nordstrom family and a Mexican retail group.
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Nordstrom to be acquired by Nordstrom family and a Mexican retail group for $6.25 billionCentury-old department store Nordstrom has agreed to be acquired and taken private by Nordstrom family members and a Mexican retail group for $6.25 billion, the company said Monday.
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Nordstrom Agreed to Be Acquired by Family and Mexican Retail GroupCentury-old department store Nordstrom has agreed to be acquired and taken private by Nordstrom family members and a Mexican retail group for $6.25 billion.
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Nordstrom Agreed to $6.25 Billion BuyoutThe department store chain Nordstrom will become a private company after accepting a buyout offer from the Nordstrom family and Mexican retailer El Puerto de Liverpool.
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Nordstrom Family and Liverpool Aim to Take Department Store PrivateThe Nordstrom family and Mexican retailer Liverpool are close to finalizing a deal to take the company private. The offer, first made in September, is valued at $3.8 billion and is expected to be completed this holiday season.
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