The family that founded Nordstrom, along with Mexico-based company El Puerto de Liverpool, has announced plans to buy out Nordstrom shares and take the retailer private once again. The all-cash transaction is valued at $6.25 billion, with the Nordstrom family and El Puerto de Liverpool offering $24.25 per share to acquire the company.
This move comes after Nordstrom set up a special committee to evaluate proposals from the Nordstrom family back in September. The special committee, after a thorough review and consultation with financial and legal advisors, unanimously concluded that the proposed transaction offers greater value for all public shareholders at a significant premium to the unaffected share price.
Upon completion of the transaction, which is expected to occur in the first six months of next year pending shareholder approval, Nordstrom will return to being privately held after over five decades as a publicly traded company since its IPO in 1971. The Nordstrom family will hold a majority stake of 50.1% post-transaction, while El Puerto de Liverpool will hold 49.9%.
Nordstrom CEO Erik Nordstrom expressed excitement about this new chapter for the business, which currently operates 93 Nordstrom stores, six Nordstrom Local sites, 280 Nordstrom Rack stores, and two Last Chance clearance stores. The retailer generated $10.69 billion in revenue over the first three quarters of 2024, with net earnings of $128 million in the same timeframe.
Overall, this acquisition marks a significant development for Nordstrom and its shareholders, as the company prepares to transition back to private ownership under the leadership of the founding family and El Puerto de Liverpool.