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HomeBusinessNordstrom founding family going private in $6.25B deal with Mexican retailer

Nordstrom founding family going private in $6.25B deal with Mexican retailer


The family that founded Nordstrom and El Puerto de Liverpool is buying Nordstrom, paving the way for retailer To return to operating as a privately held company.

Nordstrom on Monday announced its agreement for the Nordstrom family and the Mexico-based company to buy shares they do not already own.

The planned all-cash transaction, valued at $6.25 billion, comes about 10 months after Nordstrom formed a special committee to consider proposals for the Nordstrom family. The Nordstrom family and El Puerto de Liverpool put forward a $23 per share offer to take the company private in September.

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Nordstrom said Monday that the Nordstrom family, including CEO Eric Nordstrom, CBO Pete Nordstrom and others, and El Puerto de Liverpool will pay $24.25 per share to acquire the retailer.

Shoppers exit a Nordstrom store in Chicago on May 26, 2021. (Scott Olson/Getty Images)

“This price represents a premium of approximately 42% to the company’s unaffected closing common stock price on March 18, 2024, the last trading day before media speculation about a potential transaction,” the retailer said.

“The Special Committee of the Nordstrom Board of Directors reviewed this proposal against the standalone growth prospects of the Company. After a rigorous and independent assessment and consultation with external financial and legal advisors, the Special Committee unanimously concluded that this transaction is Provides greater value to the public “at a significant premium to the unlevered share price,” said Nordstrom Chairman Brad Tilden.

Nordstrom, the Nordstrom family and El Puerto de Liverpool expect the transaction to close in the first six months of next year. This would require the approval of “the holders of two-thirds of the Company’s common stock and the holders of a majority of the Company’s shares not owned by the Nordstrom family or Liverpool or their respective affiliates and the Company’s directors and Section 16 officers.” According to Nordstrom, go ahead.

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The retailer will then officially return to private ownership. Since its initial public offering in 1971, it has been a publicly traded company for more than five decades.

A Nordstrom department store in the upscale Broadway Plaza shopping center in downtown Walnut Creek, California on July 30, 2017. (Smith Collection/Gado/Getty Images)

The Nordstrom family will own a 50.1% stake in the retailer. post transactionAccording to the company, he has become the majority owner. El Puerto de Liverpool’s stake will be 49.9%.

anchor Security Last Change Change %
JWN Nordstrom Inc. 22.25 -0.41

-1.81%

Co-founded by John W. Nordstrom and Carl Wallin, the company was founded in 1901. It originated in downtown Seattle, where the pair opened their first store and where the company is headquartered to this day.

Eric Nordstrom said the news “marks an exciting new chapter for the 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 retailer operated 93 Nordstrom stores, six Nordstrom local sites. 280 Nordstrom Rack Store 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. Meanwhile, its net income in the same time frame was $128 million.

In late November, the retailer had forecast “flat to 1.0 percent growth” in annual revenue for the year compared to the 53-week fiscal year 2023.

Its market capitalization It was worth around $3.99 billion as of mid-morning Monday.



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