The Nordstrom family is partnering with Mexican retailer El Puerto de Liverpool to take the department store chain private in an all-cash transaction valued at $6.25 billion. The family believes Nordstrom will thrive outside the pressures of the public market, after its share price declined significantly in recent years. Shareholders will receive $24.25 per share, with the Nordstrom family holding a majority 50.1% stake and Liverpool owning 49.9%.
— The Nordstrom family is joining forces with a Mexican retailer to take its namesake department store private in an all-cash transaction valued at about $6.25 billion, including debt.
Nordstrom common shareholders will receive $24.25 in cash for each share of Nordstrom common stock they hold under the terms of the agreement, the company said Monday. The Nordstrom family will have a majority ownership stake in the company of 50.1%, with Liverpool owning 49.9%. The board’s acceptance of the offer underscores Nordstrom’s decline from its peak and its subdued growth prospects. In 2018, the board rejected the family’s bid to take the company private at $50 per share as too low.
During the past couple of years, investors had hoped that Nordstrom Rack, its off-price chain, could help buoy the company’s growth prospects and compensate for sluggish sales at the more upscale flagship chain. Shoppers flocked to competitors such as TJ Maxx, seeking deals as inflation soared post-pandemic.
The take-private deal will be financed through a combination of rollover equity by the Nordstrom family and Liverpool, cash commitments by Liverpool, up to $450 million in borrowings under a new $1.2 billion ABL bank financing, and company cash on hand. The board also intends to pay a special dividend of up to 25 cents a share in cash contingent on the deal closing.
“On behalf of my family, we look forward to working with our teams to ensure Nordstrom thrives long into the future,” said Erik Nordstrom, chief executive officer of Nordstrom.
RETAILERS ACQUISITIONS INVESTMENTS NORDSROM MEXICO
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
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.
Read more »
Nordstrom to Be Acquired for $6.25 Billion by Nordstrom Family, Mexican GroupNordstrom Inc. has agreed to be taken private in a $6.25 billion deal led by members of the Nordstrom family and a Mexican retail group. Shareholders will receive $24.25 per share.
Read more »
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.
Read more »
Nordstrom to Go Private in $6.25 Billion Buyout DealNordstrom will become a private company after agreeing to a buyout valued at $6.25 billion. The deal is led by Nordstrom's founding family and Mexican retailer El Puerto de Liverpool. Common shareholders will receive $24.25 per share. The transaction is expected to close in the first half of 2025, with the Nordstrom family holding a majority stake of 50.1% and Liverpool owning 49.9%.
Read more »
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.
Read more »
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.
Read more »