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The founding family of Nordstrom and El Puerto de Liverpool has acquired Nordstrom, paving the way for the retailer to return to operating as a private company.
Nordstrom announced Monday that it has reached an agreement with the Nordstrom family to buy out any shares the Mexico-based company does not already own.
The planned all-cash deal, valued at $6.25 billion, comes about 10 months after Nordstrom established a special committee to consider a proposal from the Nordstrom family. The Nordstrom family and El Puerto de Liverpool proposed a $23 per share offer to take the company private in September.
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The Nordstrom family, including CEO Eric Nordstrom and CBO Pete Nordstrom, and El Puerto de Liverpool will pay $24.25 per share to acquire the retailer, Nordstrom announced Monday. .
A shopper leaves a Nordstrom store in Chicago on May 26, 2021. (Scott Olson/Getty Images)
The price “represents an approximately 42% premium over the unaffected closing price of our common stock on March 18, 2024, the last trading day prior to media speculation regarding a potential transaction,” the retailer said. said.
“A special committee of the Nordstrom Board of Directors considered this proposal in light of the company’s standalone growth prospects. After a rigorous and independent evaluation and consultation with external financial and legal advisors, the special committee unanimously agreed that “We concluded that this transaction would create greater value for everyone,” said Nordstrom Chairman Brad Tilden. “Shareholders are paying a significant premium to the unaffected stock price.”
Nordstrom, the Nordstrom family and El Puerto de Liverpool expect the transaction to close in the first half of next year. It states: “Holders of two-thirds of our common stock, holders of a majority of our stock that is not owned by the Nordstrom Family, Liverpool, or their affiliates, our directors and Section 16 officers. Approval is required. According to Nordstrom, it passes.
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The retailer will then officially return to being a privately held company. The company has been a publicly traded company for more than 50 years, since its initial public offering in 1971.
July 30, 2017: Nordstrom department store in the upscale Broadway Plaza shopping center in downtown Walnut Creek, California. (Smith Collection/Gado/Getty Images)
After the transaction, the Nordstrom family will own 50.1% of the retailer, making it the majority owner, the company said. El Puerto de Liverpool’s stake will be 49.9%.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| JWN | Nordstrom Co., Ltd. | 22.25 | -0.41 |
-1.81% |
Co-founded by John W. Nordstrom and Carl Wallin, the company dates back to 1901. Its origins lie in Seattle, where the duo opened their first store and where the company’s headquarters are still located today.
Eric Nordstrom said the news “marks an exciting new chapter for our business.”
Shoppers enter the Nordstrom store on Michigan Avenue in Chicago on April 1, 2003. (Scott Olson/Getty Images)
As of the end of the third quarter, the company operated 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 had revenue of $10.69 billion in the first three quarters of 2024. Meanwhile, net income for the same period was $128 million.
In late November, the company expected annual sales to be “flat to 1.0% growth” “compared to the 53-week fiscal year 2023.”
The company’s market capitalization hovered around $3.99 billion as of Monday morning.
