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The family that founded Nordstrom and El Puerto de Liverpool is buying and paving the way for Nordstrom. retailer To return to operating as a private company.
On Monday, Nordstrom announced an agreement with the Mexico-based Nordstrom family and company to buy the shares it did not previously own.
The planned all-cash transaction, valued at $6.25 billion, comes about 10 months after Nordstrom formed a special committee to evaluate the Nordstrom family's proposals. The Nordstrom family and El Puerto de Liverpool made a $23-per-share offer to take the company private in September.
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The Nordstrom family, including CEO Eric Nordstrom, Pete Nordstrom and others, and El Puerto de Liverpool will pay $24.25 per share to buy the retailer, Nordstrom said Monday.
Shoppers leave a Nordstrom store in Chicago on May 26, 2021. (Scott Olson/Getty Images)
The price “represents an approximately 42 percent premium to the company's unaffected closing common stock price on March 18, 2024, the last trading day before media speculation about a potential deal,” the retailer said.
A special committee of Nordstrom's board reviewed the proposal against the company's independent growth prospects. After careful and independent evaluation and consultation with outside financial and legal advisors, the Special Committee unanimously concluded that this transaction provides greater value to all people. “Shareholders have a significant premium over the unaffected share price,” Nordstrom Chairman Brad Tilden said.
Nordstrom, the Nordstrom family and El Puerto de Liverpool expect the deal to close in the first six months of next year. It requires “the approval of the holders of two-thirds of the Company's common stock and the holders of a majority of the Company's stock that are not owned by the Nordstrom or Liverpool family or their respective affiliates and the Company's directors and Section 16 officers.” According to Nordstrom
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The retailer will then officially return to private mode. Since its initial public offering in 1971, it has been a publicly traded company for more than five decades.
A Nordstrom department store at the Broadway Plaza shopping center in downtown Walnut Creek, California, July 30, 2017. (Smith Collection/Gado/Getty Images)
The Nordstrom family will own 50.1 percent of the retailer After the transactionAccording to the company, that makes them majority owners. El Porto de Liverpool's share will be 49.9%.
| ticker | security | the last | change | change % |
|---|---|---|---|---|
| JWN | NORDSTROM Inc. | 23.06 | +0.35 |
+1.54% |
This company, which was founded by John D.
Eric Nordstrom said the news “signals an exciting new chapter for the business.”
Shoppers enter a Nordstrom store on Michigan Avenue in Chicago on April 1, 2003. (Scott Olson/Getty Images)
At the end of the third quarter, the retailer had 93 Nordstrom stores, six Nordstrom Local sites, 280 Nordstrom Rack stores and two Last Chance clearance stores, according to its third-quarter earnings report.
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Nordstrom generated revenue of $10.69 billion in the first three quarters of 2024. At the same time, its net income was $128 million during the same period.
In late November, the retailer forecast “flat 1.0 percent growth” in annual revenue for the year “compared to 53 weeks of fiscal 2023.”
it market value By mid-morning on Monday, it was floating around $3.99 billion.