Nordstrom is returning to private hands; this time, a retail group will join the Nordstrom family to acquire the iconic department store chain. The deal, reportedly worth $6.25 billion, has been struck. The family and group hope to revive the chain as retail slows down. Taking the retail chain private will give the family and the new retail group more room for improvement.
According to a press release, shareholders of Nordstrom are expected to get $24.25 in cash for each share of common stock. This will amount to a payment of $4 billion, a 42 percent premium on the stock as of March 18, when multiple outlets reported initial reports of a possible transaction.
The Monday offer is much higher than the previous $23 per share made in September. This offer was also from the Nordstrom family and Mexican retail group El Puerto de Liverpool. The new owners will also take on the publicly traded company’s $2 billion in debt before it goes private. The deal is expected to close during the first half of next year.
Nordstrom’s board unanimously approved the new deal. Two members, Erik and Pete Nordstrom, are refused to vote as they are part of the family and will continue to have a stake after the company goes private.
The retail chain, founded as a shoe store in 1901, has 381 Nordstrom and Nordstrom Rack stores in the US. It has been winding down operations in Canada. In 2023, the retail chain said it would close all its stores and stop its operations in Canada due to slow sales.
Erik Nordstrom is the company’s CEO, and Peter Nordstrom is its President. They have been at the forefront of taking their family business private after an earlier attempt by Bruce Nordstrom and other family members failed between 2017 and 2018. The Nordstrom family will own 50.1 percent of the company, while Liverpool will own 49.9 percent of Nordstrom after it goes private.
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