Century-old department store Nordstrom will be taken private by Nordstrom family members and a Mexican retail group in a $6.25 billion deal, aiming to navigate the challenges facing the retail industry.
Monday, December 23, 2024 6:55PM 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 with the industry being squeezed by discount chains and other competition. Public companies are under a lot more scrutiny and if private, Nordstrom may have more leeway in reviving a department store chain that has been attempting to reinvigorate sales for years. Nordstrom shareholders will receive $24.
25 in cash for each share of Nordstrom common stock, or about $4 billion in all, representing a 42% premium on the company's stock as of March 18, when reports of a potential transaction was reported by the media.The traditional department stores have suffered in the face of withering competition from giants like Walmart and Target, as well as a host of fast-fashion bands and Amazon.com. Nordstrom rivals Macy's and Kohl's have been pressured by major investors to make huge changes in order to return more profit to shareholders.With the downtown Nordstrom location in its final days, a once vibrant store is desolate with mannequins packaged away and many empty displays in sectioned-off areas. Sales at Nordstrom have essentially flatlined over the past decade or so and it announced last year that it was closing all of its Canadian stores and cutting 2,500 jobs as it winds down operations in the country. Nordstrom first announced plans to expand to Canada in 2012 and opened its first store in Calgary at CF Chinook Centre in September 2014. The 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. The board also plans to authorize a special dividend of up to 25 cents per share, based on Nordstrom's cash on hand immediately prior to and contingent on the close of the transactio
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Nordstrom Agreed to be Taken Private in $6.25 Billion DealNordstrom, 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.
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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 Family to Take Department Store Private in $6.25 Billion DealNordstrom, the century-old department store, is going private after agreeing to a $6.25 billion acquisition by Nordstrom family members and a Mexican retail group. Shareholders will receive a 42% premium on the stock price.
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Nordstrom to Go Private in $6.25 Billion DealCentury-old department store Nordstrom has agreed to be acquired by Nordstrom family members and a Mexican retail group for $6.25 billion, taking the company private.
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Nordstrom Family to Take Retailer Private in $6.25 Billion DealThe Nordstrom family is teaming up with a Mexican retailer to take the department store chain private, valuing the company at $6.25 billion. The move aims to shield Nordstrom from public market pressures and allow for greater flexibility.
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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%.
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